The Consumer Financial Protection Bureau has nixed a registry to track information on consumer protection violations by nonbanks, citing concerns about compliance costs.
The CFPB last year 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. The American Bankers Association raised concerns about the registry, particularly the suggestion from the bureau’s previous leadership that it may seek the same information from banks at some point in the future.
Earlier this year, the CFPB announced it would not enforce the rule and proposed to rescind it in its entirety. It rescinded the older rule in a final rule issued today, citing the compliance costs for regulated entities, “which may be passed on to consumers.” It also said the registry would be too costly for the bureau to operate.
The CFPB also withdrew a related proposed rule that would have created a public registry of nonbank contract terms and conditions “that seek to waive or limit consumer legal protections.”
