Last week, RMAI submitted Comments to the Consumer Financial Protection Bureau (CFPB or Bureau) in response to the CFPB’s request for comments concerning a proposed rule to require certain nonbank entities to register with the Bureau when subject to a public written order (such as a consent order) or a judgment. The online registry and the contents of the written orders would be publicly accessible.

RMAI indicated its opposition to the proposed rule for several reasons; including, but not limited to:

  • The registry serves no purpose as the Bureau already collects the information identified in the proposed rule and has agreements to share this information with numerous local, state, and federal agencies.
  • The decision to enter a consent order or stipulation is often made as a business and economic decision after weighing the cost of continuing to fight inaccurate or contested allegations. A public registry will make covered entities reluctant to accept consent orders. And, with covered entities less likely to consent to a resolution, state and local regulators will find themselves in protracted administrative fights and litigation. As a result, state and local regulators may be less likely to bring enforcement actions.
  • Requiring a 10-year reporting period will result in information contained in the proposed registry to be inaccurate, outdated, or obviated.
  • Orders containing confidential or non-public information should be excluded from covered orders as redacted orders will not provide a full context, rendering the public provisions of such orders confusing at best, or misleading at worst.
  • RMAI believes that the proposed rule will impose a significant, adverse, economic impact on a substantial number of small entities.

RMAI will continue to make our concerns known to the CFPB and will provide additional information to our members as it becomes available.

This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.