Letter to the CFPB on Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders

The Honorable Rohit Chopra
Director
Consumer Financial Protection Bureau
1700 G St. NW Washington, DC 20552

Dear Director Chopra,

The American Bankers Association (ABA) appreciates the opportunity to comment on the Consumer Financial Protection Bureau's proposed registration requirements for nonbanks. ABA is the voice of the nation's $23.6 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $19.2 trillion in deposits and extend $12.2 trillion in loans.

Under the proposal, nonbanks must register with the CFPB when they become subject to certain local, state, or federal consumer financial protection agency or court orders. The proposal would also require registered nonbanks subject to Bureau supervision to designate an individual to attest whether the nonbank is adhering to registered law enforcement orders. The Bureau's press release states that the Bureau may later require the same information from insured banks and credit unions.

Although the proposal is aimed at nonbanks, ABA has three concerns with it. First, the Bureau cannot require banks to register, contrary to the press release's statement that the Bureau might consider doing so in the future. The Consumer Financial Protection Act (CFPA) clearly exempts insured depository institutions from the CFPB's registration authority, stating, "[t]he Bureau may prescribe rules regarding registration requirements applicable to a covered person other than an insured depository institution, insured credit union, or related persons."

Moreover, requiring banks to register and make attestations is completely unnecessary. The stated purpose of the proposed registry is to help the Bureau monitor for risks to consumers and inform its rulemaking, consumer education, supervision and enforcement activities.

Download the comment letter to read the full text.