Constitutionality concerns cleared, the Consumer Financial Protection Bureau (CFPB) on June 3 issued its final rule creating a registry identifying covered nonbanks subject to government agency enforcement orders. The rule's release was accompanied by a statement from Director Chopra naming companies with prior enforcement orders and touting the CFPB's Repeat Offender Unit.
The rule is effective September 16, 2024. Covered entities operating under covered orders are required to register as early as October 16, 2024.
The final rule applies to "covered nonbanks" - a wide range of "covered persons" under 12 U.S.C. 5481(6) that are not in one of these categories: (i) insured depositories and credit unions, (ii) a person who is covered solely due to be a "related person" (e.g., certain consultants, contractors, and shareholders), (iii) States, (iv) natural persons, (v) certain motor vehicle dealers, and, clarifying an issue raised in comments, and (vi) certain persons that qualify as covered persons only because of conduct excluded from CFPB rulemaking (e.g., certain charitable contribution activities).
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