The Consumer Financial Protection Bureau (CFPB) announced plans to rescind its Nonbank Registry Rule (NBR Rule), which required nonbank financial companies that violated consumer laws and were subject to court or government orders to report those actions to a bureau registry. The CFPB said the decision reflects concerns that the rule’s compliance costs—potentially passed on to consumers—outweigh its unquantified benefits. It also cited the expense of maintaining the registry, which it deemed unnecessary for effectively monitoring consumer risks. The rescission will take effect upon publication in the Federal Register on October 29, 2025.
Originally proposed in December 2022 and finalized in June 2024 during the Biden administration, the rule was intended to help law enforcement identify repeat offenders among nonbank financial firms. Then-director Rohit Chopra said at the time that the registry would help prevent a “rinse-and-repeat” cycle of corporate misconduct. Under new leadership during the Trump administration, the CFPB shifted priorities, announcing in April that it would no longer enforce the regulation and proposing its rescission the following month.
