The Consumer Financial Protection Bureau finalized a rule to 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 new registry is part of the CFPB’s ongoing focus on holding lawbreaking companies accountable and stopping corporate recidivism.
The final rule requires covered nonbank companies to:
The CFPB made changes to the proposed rule in response to public feedback. For example, registrants with orders published in the NMLS Consumer Access website may use a simplified filing process. The registration requirements will be phased in on a rolling basis.
Reining in repeat offenders is a priority for the CFPB. Importantly, the CFPB established a Repeat Offender Unit. This national supervision team is responsible for designing and executing comprehensive oversight of supervised entities subject to CFPB law enforcement orders. The Repeat Offenders Unit is actively ensuring that a company, its senior management, and its board of directors are not treating any orders as suggestions. The CFPB is taking a number of steps to identify specific individuals responsible for repeat offenses.