US consumer finance watchdog proposes scrapping bad actor registry

(Reuters) -The U.S. Consumer Financial Protection Bureau is proposing to do away with a registry of nonbank corporate offenders, which was created under the Biden administration to track companies caught violating consumer laws, according to a notice submitted on Tuesday to the Federal Register.

The is the latest step in the Trump administration's broad retrenchment at the CFPB, which officials are seeking to slash to a fraction of its current size.

In unveiling the registry last year, former Director Rohit Chopra said it would help catch and deter corporate repeat offenders, including those among debt collectors, mortgage originators, payday lenders and credit reporting companies -- many of whom are not otherwise registered or licensed.

CFPB's acting Director Russell Vought said in Tuesday's notice that the agency was now concerned that the cost to companies in complying with the regulation might not outweigh the "speculative and unquantified benefits" to consumers cited to justify its creation.

The agency is seeking public comment on the registry's proposed cancellation.

CFPB representatives did not immediately respond to requests for comment.

(Reporting by Douglas Gillison; Editing by Hugh Lawson)

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