The Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking (NPR) that would require certain nonbank financial firms to register with the bureau when they are subject to certain consumer financial protection agency or court orders. The rule is meant to help the agency in identifying and mitigating risks to American households and ensure supervised companies perform their obligations, the bureau stated.
The bureau also proposed to publish the orders and company information via an online registry. Larger companies subject to the CFPB’s jurisdiction would be required to designate an individual to attest whether the firm is adhering to registered law and enforcement orders.
“Because the issuance of agency and court orders serves as one of the most important tools to pursue lawbreakers in these markets, it is important that the CFPB maintain a central repository of nonbanks subject to agency and court orders,” the bureau stated. “The repository will allow the CFPB to track and mitigate the risks posed by repeat offenders, while also being able to monitor all lawbreakers subject to agency and court orders. The CFPB will share this powerful source of information with others, including with fellow regulators and law enforcement agencies, by making the registry public.”
The registry is meant to help unify efforts of consumer financial protection enforcers and provide increased transparency. The rule also will enhance market monitoring and risk-based supervision efforts to ensure the bureau and its enforcement partners can identify previous offenders and stop further large-scale harm or continued illicit actions nationwide.
“Protecting American households is a shared effort across local, state, and federal authorities,” CFPB Director Rohit Chopra said in a release. “The proposed registry will help the CFPB, the law enforcement community, and the public limit the harms from repeat offenders.”
Once the NPR is published in the Federal Register, interested parties will have 60 days to submit comments.
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