The federal government’s top consumer watchdog is establishing a registry to track companies and individuals who repeatedly break consumer protection laws, the Consumer Financial Protection Bureau (CFPB) announced Monday.
Initially proposed in December 2022, the new rule will require non-bank companies hit with local, state or federal consumer protection-related court or agency enforcement orders to register with the CFPB and a senior executive from the company to attest the company is not still offending.
“Too often, financial firms treat penalties for illegal activity as the cost of doing business,” said CFPB Director Rohit Chopra in a statement. “The CFPB’s new rule will help law enforcement across the country detect and stop repeat offenders.”
The registry will publicly disclose information and orders entered after an agency or court has found the company or individual has committed wrongdoing or something illegal, a CFPB official said. The bureau has not established an appeal or de-listing process, as was requested in comments on the initial proposed rule.
The CFPB proposed the rule in December 2022, and a CFPB official told reporters Monday that 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.
Larger non-bank participants will be among the first tranche of registrations due Jan. 14, 2025, a CFPB official said. Other supervised companies will have until April 14 and July 14, 2025.
The bureau expects the public registry to go live sometime next year.
“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.”
