CFPB proposes ‘public rap sheet’ for nonbank financial firms

The CFPB on Monday proposed requiring nonbank financial firms to register with the agency when they are subject to consumer protection agency or court orders.

The registry, which one consumer advocate called a “public rap sheet for corporations,” would be made public.

Both credit union and banking trade groups often have criticized such firms, which they contend escape public scrutiny because they are not subject to rules issued by traditional financial regulators.

Agency officials left open the possibility that they could design a similar registry for banks and credit unions, but said it is more urgent to establish one for nonbanks that are not subject to banking and credit unions regulators.


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