CFPB Pauses Enforcement of Nonbank Registry Rule

In July 2024, the CFPB finalized a regulation establishing a public registry for nonbank financial companies subject to certain public final orders related to violations of certain consumer protection laws arising out of conduct in connection with the offering or provision of a consumer financial product or service. The purpose of the regulation was to create a centralized database for tracking these entities and related orders, promoting transparency, and aiding the CFPB and other regulators in monitoring financial services companies with their histories of compliance issues.  See prior WBK newsletter article for further information on the Nonbank Registry Rule.

On April 11, 2025, the CFPB announced that it will deprioritize enforcement actions against companies that fail to meet the upcoming registration deadlines under this rule.  CFPB further announced that it is considering issuing a notice of proposed rulemaking to rescind the regulation or potentially narrow its scope.