CFPB Withdraws Repeat Offender And Form Contract Registry Proposals

On October 29, the CFPB rescinded two related rulemakings that would have created public registries for nonbank financial companies.The Bureau withdrew both the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders and the Registry of Supervised Nonbanks That Use Form Contracts To Waive or Limit Consumer Legal Protections rules, citing significant compliance costs, duplication with existing systems, and a lack of quantifiable consumer benefit.

Both rules were originally designed to expand the Bureau's access to compliance and market-monitoring data from nonbank financial firms.The Nonbank Orders Rule required registration and executive attestations from entities subject to certain public orders, while the Form Contracts Rule would have required reporting of contract terms that restrict consumer rights.In each case, the Bureau determined that the associated costs, paperwork obligations, and operational burdens were not justified