The Consumer Financial Protection Bureau (CFPB) is launching a new public directory to detect repeat offenders. The agency notes that while many financial services firms are widely known, and thus any alleged transgressions are reported, there are many firms that do not hit the public radar. The CFPB states that Congress gave them the authority to register nonbanks – some of which may be Fintechs.
The finalized rule was posted today. The CFPB added that it is also requiring “certain supervised nonbanks to file annual reports regarding compliance with registered orders.”
The new rules entail firms must:
- 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 CFPB has established a national supervision team or Repeat Offender Unit.
The CFPB Director Rohit Chopra believes the new rule will help law enforcement “detect and stop repeat offenders.”
