AFSA Urges CFPB to Rescind its Registry Rule
AFSA and other financial trade associations sent a letter yesterday to the CFPB’s new Acting Director Scott Bessett, asking him to immediately rescind its rule on the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders (NBR Orders Rule) finalized in June 2024.
The U.S. consumer financial services market is one of the most highly regulated in the world. However, CFPB’s new registry will unnecessarily increase compliance costs for consumer financial products, while providing no additional consumer protections or useful information for Americans. AFSA is concerned that the new registry is currently structured to “name and shame” regulated financial institutions rather than act as a useful tool to effectively monitor and reduce any potential risks to consumers.
The Small Business Administration Office of Advocacy and Conference of State Bank Supervisors have echoed similar concerns to the Bureau in separate comments.
Also signing the letter: ACA International, American Fintech Council, Consumer Data Industry Association, Electronic Transactions Association, Financial Technology Association, Online Lenders Alliance, Receivables Management Association International, and the U.S. Chamber of Commerce.
February 5th, 2025
