WASHINGTON–The latest rule the Consumer Financial Protection Bureau is seeking to rescind involves a rule that requires nonbank financial firms to register with the Bureau should they be the subject of any court order or regulatory enforcement order.

The registry, adopted 2024, was meant to “help the CFPB, the law enforcement community and the public limit the harms from repeat offenders” who violated consumer laws, former CFPB head Rohit Chopra said when it was initially proposed.

But the rule has been added to the Federal Register for proposed rescission, with the CFPB saying it is now seeking comments on the proposal, as well as any “non-speculative and methodologically rigorous” analysis of the so-called NBR rule’s costs and benefits.

‘Not Justified’

“The Bureau is proposing to rescind the NBR Rule based upon concern that the costs the rule imposes on regulated entities, and which may in large part be passed onto consumers, are not justified by the speculative and unquantified benefits to consumers discussed in the analysis proffered in the NBR Rule,” CFPB Acting Director Russ Vought wrote.

According to Vought, the “significant regulatory burden” imposed by the NBR rule has been brought to the CFPB’s attention, including by the Small Business Administration’s advocacy office and the Conference of State Bank Supervisors.