The CFPB said it will not pursue enforcement or supervision actions against companies that fail to meet registration deadlines under its Registry of Nonbank Covered Persons rule, including the April 14, 2025 deadline for entities subject to certain agency orders and the July 14, 2025 deadline for those subject to court orders. The registry rule, finalized in July 2024 and codified at 12 CFR part 1092, requires nonbank financial companies subject to specific CFPB and court orders to register with the agency.
The enforcement relief comes as the bureau faces potential changes under the incoming Trump administration, which has historically sought to reduce regulatory burdens on financial services companies. The CFPB said it will 'continue to focus its enforcement and supervision activities on pressing threats to consumers' rather than pursuing registry violations, suggesting a shift in enforcement priorities.
Under the current rule, covered nonbank entities must provide detailed registration information to the CFPB, including corporate structure details, business activities, and compliance officer contact information. The regulation was designed to help the bureau track and monitor companies that have been subject to enforcement actions or court orders, ensuring ongoing compliance with consumer protection requirements.
The announcement signals broader potential changes to CFPB oversight of nonbank lenders, payday loan companies, debt collectors, and other financial service providers. The bureau said it is 'considering issuing a notice of proposed rulemaking to rescind the regulation or narrow its scope,' indicating the registry requirement may be eliminated entirely or significantly scaled back.
The registry rule was part of former Director Rohit Chopra's efforts to enhance supervision of nonbank financial companies, particularly those with histories of consumer protection violations. The regulation faced criticism from industry groups who argued the registration requirements imposed unnecessary compliance burdens on smaller financial service providers.
The enforcement relief provides immediate practical benefits for covered entities while the CFPB considers formal rule changes. Companies that would have faced April and July registration deadlines can now avoid potential penalties while the agency reassesses the program's future.
The announcement reflects broader expectations that the CFPB under new leadership will take a more industry-friendly approach to regulation and enforcement, particularly regarding smaller financial service providers who have argued that compliance costs disproportionately impact their operations.