The final rule requires non-bank companies that have been hit with consumer protection-related local, state or federal court or agency enforcement actions to register with the CFPB and a senior executive from the company to attest it is not still offending.
“Too often, financial firms treat penalties for illegal activity as the cost of doing business,” CFPB Director Rohit Chopra said in a statement. “The CFPB’s new rule will help law enforcement across the country detect and stop repeat offenders.”
The bureau has not established an appeal or delisting process, a CFPB official said. The CFPB expects the public registry to go live sometime next year.
The CFPB initially proposed the rule in December 2022, and a CFPB official told reporters Monday the final rule includes changes to cut down on duplicate registration, increase the exemption threshold to $5 million in revenue and create an implementation schedule.
The first deadline for larger non-bank participants to file will be Jan. 14, 2025, a CFPB official said. Other supervised companies will have until April 14, 2025, and July 14, 2025.
“This registry is part of a serious and concerted effort at the CFPB to rein in repeat offenders,” Chopra told reporters Monday.
“When companies believe that violating the law is more profitable than following it, this totally undermines public trusts and harms that businesses who are playing by the rules.”
The Hill’s Taylor Giorno has more here.
