Comments Due to NAFCU: CFPB - Registry of Supervised Nonbanks That Use Form Contracts

Important Regulatory Dates Add to Calendar 2023-03-20 17:00:00 2023-03-20 17:00:00 Comments Due to NAFCU: CFPB - Registry of Supervised Nonbanks That Use Form Contracts NAFCU would like to highlight the following: Nonbanks would be required to register if they use specific terms and conditions defined in the proposed rule that attempt to waive consumers' legal protections, to limit how consumers enforce their rights, or to restrict consumers' ability to file complaints or post reviews. While credit unions would not be covered by the rule, credit union service organizations (CUSOs) might be regarded as “supervised nonbanks.” Nonbank registrants would also need to identify whether courts or arbitrators have issued decisions on the enforceability of covered terms or conditions, such as by ruling on requests to enforce these covered terms and conditions. The CFPB is proposing to publish information identifying registrants and their use of these terms and conditions. A supervised nonbank’s registration of terms and conditions deemed problematic by the CFPB would not necessarily prompt an automatic enforcement action but could draw increased supervisory attention. Comments due to NAFCU: March 20, 2023 Comments due to CFPB: April 3, 2023 Comment now   NAFCU will send comments on behalf of its members to the CFPB by its deadline (April 3, 2023). Location NAFCU digital@nafcu.org America/New_York public

NAFCU would like to highlight the following:

  • Nonbanks would be required to register if they use specific terms and conditions defined in the proposed rule that attempt to waive consumers' legal protections, to limit how consumers enforce their rights, or to restrict consumers' ability to file complaints or post reviews. While credit unions would not be covered by the rule, credit union service organizations (CUSOs) might be regarded as “supervised nonbanks.”
  • Nonbank registrants would also need to identify whether courts or arbitrators have issued decisions on the enforceability of covered terms or conditions, such as by ruling on requests to enforce these covered terms and conditions.
  • The CFPB is proposing to publish information identifying registrants and their use of these terms and conditions. A supervised nonbank’s registration of terms and conditions deemed problematic by the CFPB would not necessarily prompt an automatic enforcement action but could draw increased supervisory attention.

Comments due to NAFCU: March 20, 2023

Comments due to CFPB: April 3, 2023

Comment now  

NAFCU will send comments on behalf of its members to the CFPB by its deadline (April 3, 2023).