The Consumer Financial Protection Bureau’s Proposals to Create Two Public Registries for Nonbanks: What You Need to Know, Part I

February 23, 2023
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The CFPB recently issued two proposals that would require nonbanks to register with and submit information to the CFPB for publication in an online, publicly available database. The proposals represent an aggressive attempt by the CFPB to enhance its supervisory and enforcement authorities and carry significant potential implications for nonbanks that would be required to register.

In Part I, we look at the proposal that would require companies to register when, as a result of settlements or otherwise, they become subject to orders from local, state, or federal agencies and courts involving violations of consumer protection laws. After discussing the background and purpose of the registry and the Dodd-Frank Act authorities relied on by the CFPB for the proposal, we look at which nonbanks would be required to register, what is a “covered order” that would trigger registration, and the requirements for registration, recordkeeping, and annual attestation by an executive officer. We also look at state law requirements for licensed entities to disclose regulatory actions taken against them.

Alan Kaplinsky, Senior Counsel in Ballard Spahr’s Consumer Financial Services Group, hosts the conversation, joined by Richard Andreano, Michael Gordon, John Culhane, and Lisa Lanham, partners in the Group.

View the recording transcript here. 

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