WASHINGTON--The CFPB rescinded a final rule and withdrew a proposed rule in the Federal Register Wednesday morning.
America’s Credit Unions said its legacy organizations were engaged with both during the rulemaking process and expressed concerns over their impact on credit unions.
The Bureau rescinded its 2024 rule requiring certain nonbank covered persons subject to public orders issued by a government agency to report the existence of the orders and related information to a CFPB registry. America’s Credit Unions said its legacy organizations supported the intent of the database, and its exclusion of credit unions, but noted concerns during the rulemaking process with proposed language indicating the CFPB might consider collecting the information described from credit unions.
The bureau also withdrew a 2023 proposal to create a registry of supervised nonbanks that use certain form contracts. The CFPB determined that the rulemaking is “not necessary or appropriate at this time” and will not take any further action on the proposal.
America’s Credit Unions said its legacy organizations had strong concerns that the proposal would bring additional burdens to credit unions using credit union service organizations or vendor form contracts.
The Bureau also rescinded amendments to the rules of practice for adjudication proceedings made in 2022 and 2023. The CFPB’s powers include authorization to conduct adjudication proceedings that could include credit unions.
The 2022 and 2023 amendments involved a new deposition process, timing and deadlines changes, bifurcation of proceedings, the process for deciding dispositive motions, and more, but both sets of amendments have been rescinded effective with Wednesday’s publication in the Federal Register, ACU noted.
DCUC Responds
“Today’s announcement by the CFPB to rescind its 2024 final rule requiring certain non-bank covered persons subject to public orders to report to a CFPB registry, and to withdraw its 2023 proposed rule on contracting registries, is a welcomed correction of course," said Defense Credit Union Council Chief Advocacy Officer Jason Stverak. "While DCUC strongly supports regulatory oversight that protects financially vulnerable consumers and ensures transparency in financial services, we have consistently raised concerns that the agency’s expansion of reporting burdens could inadvertently ensnare credit unions—especially those serving military members, veterans and their families—without commensurate benefit."
Stverak pointed out credit unions—including the defense-credit-union community—operate under a unique not-for-profit, member-owned model designed to serve people, not profits.
"They already face rigorous federal and state oversight. Layering new registries and compliance mandates—absent clear consumer benefit—risks diverting resources away from the core mission of serving members and complicating the ability to provide affordable, mission-driven service," he explained. "We hope the CFPB uses this moment to reaffirm a regulatory posture that is risk-based, tailored, and attuned to the realities of not-for-profit institutions whose primary focus is the financial well-being of their members—not the bottom line. For credit unions supporting the defense-community, veteran-community and military-family ecosystem, predictability, clarity and proportionality in regulation matter."
Stverak added that DCUC stands ready to work with the CFPB, Congress, and the broader federal regulatory community to refine policy frameworks so that oversight remains strong, but also fair, efficient and properly calibrated to the differing mission of credit unions.
"We believe this approach best ensures that credit unions can continue delivering the financial stability and support our nation’s servicemembers and their families deserve," he said. "We look forward to further dialogue on how to keep regulatory burdens reasonable and help ensure that the credit-union charter remains focused on people helping people.”