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

March 2, 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 II, we look at the proposal that would require companies to register that “enter into covered form contracts,” meaning consumer contracts that use “covered terms or conditions” (regardless of legal validity or enforceability). After discussing the background of the registry and its relationship to the CFPB’s final arbitration rule that was overturned by Congress, we look at which nonbanks would be required to register, what is a “covered form contract,” when does a company “enter into” such a contract, and what kinds of waivers or limitations are “covered terms or conditions.” We also look at the registration requirements and state level corollaries.

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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