WASHINGTON–The Consumer Financial Protection Bureau (CFPB) has rescinded amendments that allowed for the public disclosure of final decisions in nonbank supervisory designation proceedings.
The move is just the latest by the Bureau under the Trump administration to reverse the CFPB’s earlier positions, or to opt not to enforce certain decisions.
The change reverses a policy the CFPB first adopted in 2022 and later amended in 2024. Its new rule not takes effect on Oct. 27, 2025.
The rule applies to nonbank financial firms, such as fintechs, that are designated for CFPB supervision because they are deemed to pose a risk to consumers.
Key Changes
According to the Bureau, among the key changes in its final rule:
- Public disclosure eliminated for contested proceedings. The most significant change is the elimination of the CFPB director’s authority to publicly release final orders related to contested supervisory designation proceedings.
- Confidentiality for voluntary consent. Firms that voluntarily consent to supervision will not have their agreements made public. According to the Bureau, this change offers a major incentive for companies to cooperate rather than contest supervision, as it protects their public reputation.
- Addressing reputational pressure. The CFPB said publicizing contested cases could put “inappropriate pressure” on firms to consent to designation, even when they have a strong case for not being supervised. It further stated the “procedural disparity created an imbalance that the new rule aims to correct.”
- Limited utility of published orders: The CFPB said the public benefit of releasing final orders was limited, and that with the majority of firms consenting voluntarily and proceedings requiring heavy redactions of confidential information, the published documents often failed to provide a complete or useful picture of the CFPB’s supervisory process.
Some Adjustments Retained
The CFPB said it is keeping some process adjustments from the 2024 rule, including authorizing a written reply to a respondent’s written response and permitting video conferences for supplemental oral responses.
America’s Credit Unions Responds
In comments filed with the bureau Thursday, America’s Credit Unions expressed appreciation to the bureau for working to limit regulatory burdens, while also raising these concerns about the impact to credit unions.
“As it stands, credit unions are extensively supervised by two regulatory agencies while non-depository institutions like fintech companies are not. Consequently, credit unions would be subject to far more compliance costs and a massive competitive disadvantage,” the letter states.
