On June 3, 2024, the CFPB issued a rule to establish a registry to detect and deter corporate offenders that have broken consumer laws and are subject to federal, state, or local government or court orders. The new registry is part of the CFPB’s ongoing focus on holding lawbreaking companies accountable and stopping corporate recidivism.
According to the CFPB, the new registry will facilitate better understanding of violators that seek to restart a scam, fraudulent scheme, or other illegal conduct that harms the public. The CFPB expects that the registry will be used by state attorneys general, state regulators, and a range of other law enforcement agencies. The registry will also assist investors, creditors, business partners, and members of the public that are conducting due diligence or research on financial firms bound by law enforcement orders.
The CFPB’s new rule will require covered nonbank companies to:
Register with the CFPB when they have been caught violating consumer law; and
Provide an attestation from a senior executive that the company is not flouting orders.
The final rule will become effective on September 16, 2024.
Read the CFPB’s announcement here.
The Final Rule can be found here.