The Southwest Public Policy Institute (SPPI) has joined a coalition of organizations urging the Consumer Financial Protection Bureau (CFPB) to rethink its proposed nonbank disclosure rule. The coalition letter, signed by a broad spectrum of Americans, raises concerns about the rule that would require certain nonbank covered person entities to report final public enforcement orders obtained or issued by a federal, state, or local agency in connection with the offering or provision of a consumer financial product or service to a Bureau registry.
The CFPB’s proposed rule would risk public trust in new and emerging financial institutions by publicly “naming and shaming” organizations that may have committed infractions that are not indicative of widespread wrongdoing or malice. Also concerning is the potential disruption to the state and local oversight process and the financial and time-consuming burden that compliance with the new rule would place on businesses.
Coalition partners argue that the CFPB should refrain from implementing the nonbank disclosure rule, as it would harm taxpayers waiting on agreements, disrupt state and local oversight, erode public trust, and provide an undue burden on organizations seeking to provide services to consumers.
This letter is the latest effort by SPPI to push back against an overly zealous CFPB. The Southwest Public Policy Institute joins the coalition headed by the National Taxpayers Union, which includes American Consumer Institute, Americans for Tax Reform, R Street Institute, Taxpayers Protection Alliance, Center for Individual Freedom, Citizens Against Government Waste, and Independent Women’s Voice.
The letter was submitted on March 31, 2023.