The Consumer Financial Protection Bureau announced last week that it would not enforce a Biden-era rule requiring certain nonbank lenders to register information about their company with the bureau along with any agency or court orders concerning consumer protection violations.
The 2024 rule requires nonbanks to report information to the CFPB, which would be made available through a public registry. In a brief statement on Friday, the bureau said it will not prioritize enforcement or supervision actions with regard to entities that do not satisfy future deadlines under the regulation. “The bureau will instead continue to focus its enforcement and supervision activities on pressing threats to consumers,” it said.
The bureau added that it is considering issuing a notice of proposed rulemaking to rescind the regulation or narrow its scope.
