CFPB's Notice Of Proposed Rulemaking

On January 11, 2023, the Consumer Financial Protection Bureau (CFPB) issued a Proposed Rule that will, if adopted, require certain nonbank covered entities—including consumer reporting agencies (CRAs)—to register certain contract terms and conditions with the CFPB. The Proposed Rule excludes from the registration requirements nonbanks having annual receipts less than $1 million from offering or providing certain consumer financial products or services.

The Proposed Rule requires that nonbanks (including CRAs) register each year in a nonbank registration system established by the CFPB and report information about the nonbanks' use of "covered terms and conditions" in form contracts for consumer financial products and services that pose risk to consumers. The CFPB would publish and maintain a publicly available source of information that includes supervised registrants and the covered terms and conditions that supervised registrants use.