As we recently reported, the CFPB issued its final rule, titled the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders Final Rule on June 3, 2024. The CFPB touts the registry as something that will help detect and deter repeat offenders of consumer financial protection laws, even though the registration requirements apply to an entity subject to a single consent order and in full compliance with the order. The registry reaches back to agency and court orders with an effective date of on or after January 1, 2017.

In conjunction with the release of the final rule, the CFPB addressed the formation of a Repeat Offenders Unit:

“Reining in repeat offenders is a priority for the CFPB. Importantly, the CFPB established a Repeat Offender Unit. This national supervision team is responsible for designing and executing comprehensive oversight of supervised entities subject to CFPB law enforcement orders. The Repeat Offenders Unit is actively ensuring that a company, its senior management, and its board of directors are not treating any orders as suggestions. The CFPB is taking a number of steps to identify specific individuals responsible for repeat offenses.”

We understand that the CFPB has reached out to an industry member subject to an older consent order covered by the final rule to inquire about compliance with the order. Companies subject to CFPB consent orders, particularly orders with effective dates on or after January 1, 2017 that are still in effect, may want to get information together demonstrating compliance with the order in advance of the CFPB reaching out to them.

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