AFSA and several financial trade associations have formally requested the Consumer Financial Protection Bureau (CFPB) to withdraw its recently finalized rule concerning the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders, also known as the NBR Orders Rule. The letter was addressed to Scott Bessett, the new Acting Director of the CFPB.
The associations argue that while the U.S. consumer financial services market is heavily regulated, the new registry imposes unnecessary compliance costs on consumer financial products without offering additional consumer protections or beneficial information for consumers. AFSA expressed concern that "the new registry is currently structured to 'name and shame' regulated financial institutions rather than act as a useful tool to effectively monitor and reduce any potential risks to consumers."
Concerns similar to those raised by AFSA have been echoed by other entities, including the Small Business Administration Office of Advocacy and Conference of State Bank Supervisors, in separate comments directed at the CFPB.
In addition to AFSA, several other organizations endorsed the letter. These include ACA International, American Fintech Council, Consumer Data Industry Association, Electronic Transactions Association, Financial Technology Association, Online Lenders Alliance, Receivables Management Association International, and the U.S. Chamber of Commerce.
February 5th, 2025