On October 29, the CFPB published a proposed rule in the Federal Register to withdraw its 2023 proposed rule implementing a registry of form contracts used by covered nonbanks to impose terms and conditions that limit consumer legal protections. The Bureau’s rule would have required nonbanks to submit annual reports on the terms and conditions in their form contracts and related court or arbitrator decisions. In withdrawing the proposed rule, the CFPB found that the costs associated with the proposed registration were not justified by their benefits, which the Bureau deemed “speculative.” The Bureau also cited “additional limitations on the Bureau’s resources” and “the Bureau’s focus on limiting regulatory burdens on the American people” in justifying the rescission.

The CFPB received 35 unique comments on the proposed rule, including opposition from congressmembers, tribes, and trade associations representing nonbank providers, depository institutions, and credit unions; supportive comments were received from nonprofits and consumer advocacy organizations, law professors, law students, and individuals. Most commenters focused on the registration and publication process rather than the use of form contracts themselves. The proposed rule formally withdrew the 2023 previous rule following publication in the Federal Register.