Federal Reserve Gov. Stephen Miran details how policy will be influenced by the government shutdown’s effects on the release of job data on ‘The Claman Countdown.’
The Trump White House is taking steps to undo Biden-era mandates at the Consumer Financial Protection Bureau (CFPB), which mandated firms under federal regulatory orders to put them on CFPB registries.
A couple of documents obtained exclusively by FOX Business revealed the CFPB intends to issue an order to take back a rule, the NBR Orders Rule, that made nonbank organizations under directives from government bodies concerning financial products report these directives to a CFPB registry.
“The Bureau is completing the removal of the NBR Rule because there are concerns that the costs the rule places on entities being regulated, and which might be passed on to consumers, are not supported by the tentative and unquantified consumer benefits included in the analysis given in the NBR Rule,” the agency stated.
The NBR Rule was completed in July 2024 and started in September of last year. The Biden administration’s CFPB thought the rule would improve the agency’s market monitoring and supervision of nonbanks via collecting and publishing details regarding orders applying to nonbanks and the steps taken to adhere to such orders.
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The Consumer Financial Protection Bureau (CFPB) is making plans to undo a couple of rules from the Biden era. (Anna Moneymaker/Getty Images)
“In particular, it thought that the Bureau’s development of a centralized system for gathering and publishing details regarding covered orders against covered nonbanks would result in better and more successful monitoring, discovery, assessment, public knowledge, and mitigation of the risks that Federal consumer financial law violations pose to consumers, including repeat violations,” the agency stated.
CFPB approximated that the burden of complying would include 35 hours of paperwork, including five hours for the first registration, and 30 hours for the annual report, with recordkeeping costs. It also approximated that the NBR Rule would have an impact on 1,550 to 7,752 covered nonbanks, causing them to incur $350 in labor costs for the first registration and $2,100 for the annual reporting cycle.
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OMB Director Russell Vought is also acting as the director of the CFPB. (Andrew Harnik/Getty Images)
By moving to take back the rule, the CFPB decided that the “NBR Rule isn’t a needed tool for observing and decreasing risks to consumers from bad actors,” partially because other federal and state agencies are enforcing laws regarding consumer finance.
Earlier in the year, the CFPB said that it would not enforce the NBR Orders Rule, and the order coming up would formally take back the regulation.
The CFPB is also proceeding with plans to withdraw a proposed rule for gathering data on the use of terms and conditions in form contracts that supervised nonbanks use, which seem to limit consumers’ legal rights.
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Rohit Chopra was the CFPB chair during the Biden administration. (Samuel Corum/Bloomberg via Getty Images)
Among the limits it was planning to deal with were waivers of claims consumers can bring in a legal action or to find out the timeframe or location of an action, limits on how much a company owes to a consumer, limits on how consumers can take part in class action lawsuits, restraints on consumers being able to complain or post feedback, and agreements to arbitrate.
The CFPB stated that the rule would have greatly burdened covered nonbanks, which “aren’t supported by their unclear and speculative benefits.” The agency added that it has considered changes and updates to its policies, agenda, and goals in taking back the proposed rule.
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The proposed rule was shared on Feb. 1, 2023, but wasn’t completed and will be withdrawn through the pending CFPB filing.
