September 4, 2024

Earlier this summer, we wrote that the CFPB had adopted as final a rule requiring nonbanks that offer consumer financial services to “register” with it providing information about their companies and certain final orders issued by courts or federal, state or local regulatory bodies. You can read the CFPB’s July 8, 2024 Federal Register publication of the Rule here: https://www.govinfo.gov/content/pkg/FR-2024-07-08/pdf/2024-12689.pdf

First things first: If your company has not been subject to a final order from a court or local, state, or federal regulator, you do not need to register.

Second: If your company has been subject to a court or regulatory final order, your company still does not have to rush to register! Formal registration for covered nonbank providers will begin on April 14, 2025 with an absolute deadline of July 14, 2025.

The requirement to register applies to pawnbrokers because you are subject to the CFPB’s authority for rulemaking and enforcement.

You need to register your company IF:

· your company was a party to a final order from a federal, state, or local regulatory authority or from a court,

· the order imposes obligations on you and your company based on alleged violations of Federal consumer financial protection laws, other laws enforced by the CFPB, and unfair, deceptive, or abusive acts or practices at the Federal or state levels, and

· the effective date of the order or orders was on or after January 1, 2017, you need to register and is effective on a date between April 14, 2025 and July 14, 2025 whenever you register your company.

If your company does not fall under all three of these requirements, you do not need to register. If the issuing court or agency stays or suspends an order’s effective date, then that order is not yet required to be filed with the CFPB and the registration requirement does not apply. Consent orders are “orders” for the purposes of this final rule.

The CFPB has issued an Executive Summary of the final rule’s requirements. You can read it here: https://www.govinfo.gov/content/pkg/FR-2024-07-08/pdf/2024-12689.pdf This summary describes the specifics of required registration materials on pages 3-5. If you have had more than one final order issued against your business, please read page 7.

As the window for registration of nonbanks not subject to CFPB large-participant supervision (most pawnbrokers) approached, we will return with more specifics on registration requirements.

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