CFPB Proposes Registry of Consumer Protection Law Violators

The CFPB proposed to establish and maintain a registry designed to collect information about certain public agency and court orders.

Under the proposed rule, the CFPB would require nonbank covered person entities to report to the registry certain public written orders and judgements issued by federal, state or local agencies related to "violations of certain consumer protection laws." The registry entries would include (i) basic identifying information about the company and the order and (ii) a copy of the order. Affected nonbank entities would be required to periodically update the registry. Additionally, certain CFPB-supervised nonbanks would be required to publicly designate an executive (or executives) responsible for the firm's compliance efforts related to the order and submit annual statements detailing the entity's compliance efforts, including a certification from the named executive. The CFPB said that it plans to make the information in the registry available to the public and other regulators.