CFPB Issues Final Rule Creating Registry To Identify Nonbank Repeat Offenders

As part of its ongoing efforts to reduce what it views as corporate recidivism, the Consumer Financial Protection Bureau (CFPB) issued a final rule on June 3, 2024 that will require certain nonbank financial companies to register with the CFPB when they become subject to final agency orders alleging violations of consumer financial laws (Final Rule).¹ For nonbank financial companies subject to the CFPB's supervisory authority, a senior executive will also be required to provide a written "attestation" to the CFPB on an annual basis noting whether the executive is aware of any violations or instances of noncompliance with any registered orders. Those same companies will also be required to maintain records sufficient to provide reasonable support for the written attestation for five years after it is submitted. In addition to compliance obligations created by the Final Rule, nonbank financial companies with registered orders should prepare for increased scrutiny from