CFPB Proposes A Public Registry Of Companies With Disciplinary Actions And Court-Orders To Prevent Recidivism 

CFPB Proposes A Registry
CFPB Proposes A Public Registry Of Companies To Stop Repeat Offenders

The CFPB proposes a registry of financial firms when they become subject to CFPB discipline or court orders.

The agency proposed on Monday to publish the orders and company information via an online registry.

The CFPB proposal would require nonbanks to report final stipulated and consent orders to the registry. The registry would also contain court orders and judgments. The agency would also require lenders to record violations of state laws regarding unfair, deceptive, or abusive acts or practices.

CFPB would also require large companies to designate an individual to attest whether the firm is adhering to the orders. The proposed rule would help the agency ensure that companies perform their obligations to consumers, as well as identify potential risks.

CFPB Director Rohit Chopra told the media:

Protecting American households is a shared effort across local, state, and federal authorities. The proposed registry will help the CFPB, the law enforcement community, and the public limit the harms from repeat offenders.

The CPFB says the repository will allow it to track and mitigate the risks posed by repeat offenders. The repository will also being able to monitor all lawbreakers subject to agency and court orders. The agency is also proposing to make the registry public. The rationale is to promote transparency among fellow regulators and law enforcement agencies.

The CFPB also stated in a news release that the proposal entails enhancing market monitoring and risk-based supervision efforts. The logic behind this is to ensure that the bureau and its enforcement partners can identify previous lawbreakers. The registry will also attempt to halt halt any further large-scale harm or continued illegal efforts.

The full proposed rule can be read here.

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