Nonbank financial companies found violating the law will be required to register with the Consumer Financial Protection Bureau.
A rule finalized by the CFPB Monday will establish a registry and require nonbank companies to report court orders and judgments. The rule also will require senior executives of the company to provide written documentation that it is complying with court orders.
Certain motor vehicle dealers fall under the rule. The CFPB executive summary suggest that covered car dealers look into whether products and services as part of orders fall under the rule.
In announcing the rule, the CFPB stated the registry would be available for state regulators, law enforcement agencies and the public to monitor research firms.
The registry will go into effect Oct. 16, 2024, for large institutions. The deadline for all nonbanks required to register is July 14, 2025.
Used auto dealers will get a chance to hear straight from the CFPB during the NIADA Convention and Expo. Malini Mithal, the Associate Director of the Federal Trade Commission’s Division of Financial Practices, will answer questions during a 45-minute session about the Combatting Auto Retail Scams rule and recent enforcement actions by the FTC.
Mithal supervises investigations and enforcement actions challenging unfair or deceptive practices in the provision of non-bank financial services, including in the areas of fintech, lead generation, short-term loans, debt collection, student loan debt relief, mortgage relief and automobile advertising and financing. Under her leadership, the division has also engaged in significant policy initiatives, including hosting workshops or issuing reports on dark patterns, marketplace lending, blockchain, artificial intelligence, peer-to-peer payments, crowdfunding, lead generation, mobile payments, and mobile cramming. The Fireside Chat with the FTC is 4:15 p.m., Wednesday, June 19.
There will be additional sessions with representatives of the IRS and the Federal Trade Commission.
