The rescission will be effective when it is published in the Federal Register, which is scheduled for Wednesday (Oct. 29), according to an unpublished PDF version of the rule posted on the Federal Register website.
“The bureau is finalizing the rescission of the NBR Rule based on concerns that the costs the rule imposes on regulated entities, which may be passed on to consumers, are not justified by the speculative and unquantified benefits to consumers discussed in the analysis proffered in the NBR Rule,” the CFPB said in the unpublished PDF version. “In addition, the bureau is finalizing this rescission based in part on the cost to the bureau of maintaining the registration system created by the NBR Rule, which the bureau believes is not a necessary tool to effectively monitor and reduce potential risks to consumers.”
The CFPB initially proposed the creation of this registry in December 2022, and the agency issued a final rule to establish the registry in June 2024, during the President Joe Biden administration.
When announcing the final rule, the CFPB said the registry would include nonbank financial companies that have broken consumer laws and are subject to federal, state or local government or court orders.
The agency added that the registry was meant to help law enforcement across the United States identify and stop repeat offenders.
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Rohit Chopra, who was director of the CFPB at the time, said when the final rule was announced: “Too many American families have been harmed by corporate repeat offenders in a rinse-and-repeat cycle of illegality, where bad actors see fines and penalties as the cost of doing business. Throughout our economy, we have seen fraudsters and scam artists get caught in one part of the country and restart their scheme in a new place hoping to not get caught again.”
Under new leadership during the President Donald Trump administration, the CFPB said in April that it would not prioritize enforcement of the regulation requiring the registry and said in May that it proposed to rescind the NBR Rule.
