CFPB finalizes registry for corporate repeat offenders

The CFPB has announced it has finalized a rule, "Nonbank Registration," to be added to Title X of the C.F.R. as Part 1092. The rule will establish a registry to detect and deter corporate offenders that have broken consumer laws and are subject to federal, state, or local government or court orders. The registry will also help the CFPB to identify repeat offenders and recidivism trends.

The CFPB’s new registry will facilitate better understanding of bad actors that seek to restart a scam, fraudulent scheme, or other illegal conduct that harms the public. The CFPB expects that the registry will be used by state attorneys general, state regulators, and a range of other law enforcement agencies. The registry will also assist investors, creditors, business partners, and members of the public that are conducting due diligence or research on financial firms bound by law enforcement orders.

The CFPB’s final rule requires covered nonbank companies to:

• Register with the CFPB when they have been caught violating consumer law: Generally, covered nonbanks will report certain final agency and court orders and judgments to the CFPB. These orders include consent and stipulated orders brought under consumer protection laws.
• Provide an attestation from a senior executive that the company is not flouting orders: For nonbank companies supervised by the CFPB, the entity subject to an order will provide a written attestation from an executive that confirms compliance with any relevant orders.

The rule will become effective September 16, 2024, with implementation dates that are 30, 120, or 210 days after the effective date.

• Executive summary
• Publication update: Published at 89 FR 56028 on 7/8/2024