CFPB Finalizes Rule to Create “Repeat Offender” Registry

Last week, the Consumer Financial Protection Bureau (CFPB) finalized a rule that will establish a registry to track people and companies that have repeatedly broken consumer protection laws. Non-bank companies with local, state, or federal consumer protected-related enforcement orders will be required to register with the agency, and a senior executive from the company must show that the company is no longer violating the laws in question. 

“Too often, financial firms treat penalties for illegal activity as the cost of doing business,” said CFPB Director Rohit Chopra. “The CFPB’s new rule will help law enforcement across the country detect and stop repeat offenders.” The registry is part of the agency’s declared effort to stop corporate recidivism and hold companies accountable when they break the law.

The Hill noted that the CFPB proposed the rule in December 2022, and larger non-bank companies have until January 14, 2025 to register. Other supervised companies have until April 14, 2025 and July 14, 2025. The registry will publish orders and information entered after a court or agency has found the company or individual to be breaking consumer protection laws. 

Additionally, the Bureau says the registry will increase understanding of bad actors trying to restart a scam, fraudulent scheme, and other illegal conduct. The CFPB expects it to be utilized by state attorneys general, regulators, and other law enforcement agencies, and will help business partners and members of the public conduct research on firms held to law enforcement orders. 

“This registry is part of a serious and concerted effort at the CFPB to rein in repeat offenders,” Chopra told reporters. “When companies believe that violating the law is more profitable than following it, this totally undermines public trusts and harms businesses who are playing by the rules.”