Fintech Companies Might Need To Register With CFPB Under Proposed Rule

Last week, the Consumer Financial Protection Bureau (CFPB) proposed a rule to establish a public registry of terms and conditions in form contracts that purport to waive or limit consumer rights and protections.

The rule would require supervised nonbanks to register with the CFPB if their contractual terms and conditions include provisions seeking to restrict certain consumer rights or to waive any constitutional, statutory, or common law legal protection, right, or defense.

The rule would require registration of form contracts that:

• Waive the claims a consumer can bring in a legal action
• Limit the company's liability to a consumer
• Limit consumers' ability to bring a legal action by dictating the time frame, forum, or venue for a consumer to bring a legal action