CFPB withdraws rules creating court order, contract term databases

The CFPB rescinded a final rule and withdrew a proposed rule in the Federal Register this morning. America’s Credit Unions’ legacy organizations were engaged with both during the rulemaking process and expressed concerns over their impact on credit unions.  

The bureau rescinded its 2024 rule requiring certain nonbank covered persons subject to public orders issued by a government agency to report the existence of the orders and related information to a CFPB registry.

America’s Credit Unions’ legacy organizations supported the intent of the database, and its exclusion of credit unions, but noted concerns during the rulemaking process with proposed language indicating the CFPB might consider collecting the information described from credit unions.

The bureau also withdrew a 2023 proposal to create a registry of supervised nonbanks that use certain form contracts. The CFPB determined that the rulemaking is “not necessary or appropriate at this time” and will not take any further action on the proposal.

America’s Credit Unions’ legacy organizations had strong concerns that the proposal would bring additional burdens to credit unions using credit union service organizations or vendor form contracts.

The bureau also rescinded amendments to the rules of practice for adjudication proceedings made in 2022 and 2023. The CFPB’s powers include authorization to conduct adjudication proceedings that could include credit unions.

The 2022 and 2023 amendments involved a new deposition process, timing and deadlines changes, bifurcation of proceedings, the process for deciding dispositive motions, and more, but both sets of amendments have been rescinded effective with today’s publication in the Federal Register.