CFPB Proposes Registry of Terms and Conditions in Consumer Financial Form Contracts

  • The CFPB has proposed a rule that aims to protect consumers from fine print in non-negotiable contracts with nonbanks that provide consumer financial services.
  • The proposed rule would require nonbanks that are subject to CFPB jurisdiction to submit certain terms and conditions in their form contracts for consumer financial products and services to a public registry. Specifically, companies would be required to register terms and conditions that purport to waive consumers’ legal protections, limit how consumers enforce their rights, or restrict consumers’ ability to file complaints or post reviews.
  • The CFPB proposes publishing information identifying such nonbank registrants and their use of terms and conditions to help facilitate public awareness and oversight by other regulators, including the States. Companies subject to the rule could include payday lenders, private student loan originators, and consumer reporting companies.