FOR IMMEDIATE RELEASE
April 3, 2023
William Pierre-Louis, Jr.
CFPB Proposed Rule will Bring Accountability for Financial Corporations
Washington, D.C. — The Consumer Financial Protection Bureau (CFPB) proposed rulemaking to require that regulated nonbank entities annually register with the CFPB regarding their use of specific terms and conditions in form contracts for consumer financial products and services will reinforce the agency’s ongoing efforts to bring transparency and accountability on how financial industries operate, according to Americans for Financial Reform Education Fund and consumer coalition advocates.
“Some financial services companies regularly put customers at a disadvantage and seek to escape accountability for abusive practices by putting language that strips people of their rights in take it or leave it contracts. Including their rights to take a company to court to enforce the law,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform Education Fund. “This proposed rule from the CFPB takes the useful step of shining a light on this problem, and making it harder for companies to hide. We urge the Bureau to finalize it swiftly, and to take further action to protect consumers from unfair terms and conditions.”
Nonbank entities covered by this proposed rule include private education lenders, payday lenders, firms offering auto financing, credit reporting agencies and consumer debt collectors. The proposed registry would bring transparency to the terms and conditions routinely weaponized by corporations to undermine consumer rights.
A comment letter signed by the National Consumer Law Center, National Association of Consumer Advocates, Americans for Financial Reform Education Fund, Public Justice, US PIRG, Better Markets, Consumer Action, Public Citizen, and the Consumer Federation of America is available here.