The Consumer Financial Protection Bureau (CFPB) issued a proposed rule to establish a public registry of nonbanks’ terms and conditions in form contracts. The rule would not apply to credit unions.
Nonbanks subject to the CFPB’s supervisory jurisdiction would need to submit information on terms and conditions in form contracts to be posted in a registry that will be open to the public, including to other consumer financial protection enforcers.
CUNA has concerns that the proposal is the first action from the CFPB that would eventually be extended to financial institutions to place arbitrary limits on how credit unions structure service contracts.
CUNA had similar concerns with the CFPB’s arbitration rule, which banned the use of pre-dispute arbitration clauses. CUNA supported successful Congressional efforts to overturn the rule via Congressional Review Act in 2017.