The American Bankers Association last week joined two associations in reiterating their concerns about the Consumer Financial Protection Bureau’s nonbank registry, which the current bureau leadership has proposed to eliminate.
The CFPB last issued a rule requiring nonbanks to register their information with the bureau along with any agency or court orders concerning consumer protection violations. The data would be made available through a public registry. However, earlier this year, the CFPB announced it would not enforce the rule and proposed to rescind it in its entirety.
In a joint letter on the proposed rollback, the associations repeated the concerns they raised when the rule was first announced. They noted the bureau previously suggested it may require the same information from insured banks and credit unions, but that conflicts with the exemptions for depository institutions in the Consumer Financial Protection Act. They said the rule could be interpreted as stating that only insured depository institutions – and not holding companies and nonbank affiliates – would be exempt from the registration requirements. They also raised concerns about the requirement that nonbanks designate a senior executive to oversee registry compliance.
