On October 29, the CFPB issued a final rule in the Federal Register rescinding its previous rule requiring certain nonbanks to report to the Bureau any government final orders related to consumer financial products or services. The CFPB stated the rescission is based on: (i) the costs imposed on entities for reporting, which it asserted may be passed on to consumers; and (ii) the cost to the Bureau to maintain a registration system. The Bureau further stated that the reporting requirement was not necessarily an effective mechanism to monitor or reduce risks to consumers.

As previously covered by InfoBytes, the rule originally took effect September 16, 2024. In April, following the change in administration, the CFPB announced it would not “prioritize enforcement” of those entities who did not meet the registration deadlines (covered here). The Bureau then proposed rescission of the rule in May 2025 (covered here), which is now final.

The CFPB received 16 responses in its request for public comment, and many commenters purportedly supported rescission, arguing the registry rule’s requirements were duplicative, unnecessary or burdensome, while others opposed rescission for transparency concerns. Approximately only 110 entities had registered an order prior to the rule’s rescission out of the roughly 4,000 unique nonbank entities the CFPB had estimated would be affected by the rule.

The final rule went into effect following publication in the Federal Register.