Registry of Supervised Nonbanks that Use Form Contracts to Impose Terms and Conditions That Seek to Waive or Limit Consumer Legal Protections
The Bureau has statutory responsibilities to monitor for risks to consumers in markets for consumer financial products and services and to conduct a risk-based nonbank supervision program. Pursuant to these authorities, the CFPB is proposing a rule to require that nonbanks subject to its supervisory authority, with limited exceptions, annually register with the CFPB regarding their use of certain terms and conditions in form contracts for consumer financial products and services that pose risks to consumers. CFPB supervises nonbanks in markets for mortgage lending, payday lending, and private student lending, as well as larger participants in markets for consumer reporting, consumer debt collection, student loan servicing, international money transfers, and automobile financing. Nonbanks offering or providing these consumer financial products and services would be required to register if they use specific terms and conditions defined in the proposed rule that attempt to waive consumers’ legal protections, to limit how consumers enforce their rights, or to restrict consumers’ ability to file complaints or post reviews. To facilitate public awareness and oversight by other regulators including state and tribal regulators, the Bureau is proposing to publish information identifying registrants and their use of these terms and conditions.
Proposed rule with request for public comment
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