US consumer finance watchdog drops plan to track nonbank lenders

The US Consumer Financial Protection Bureau has withdrawn its proposed rule to create a public registry of nonbank financial companies. This means consumers will not have a central place to see which nonbank lenders use contracts that limit their legal rights.

The CFPB wanted to shine a light on a common practice: nonbank lenders using fine print to strip away consumer protections, like the right to sue. Without a public registry, it is harder for consumers to know which companies do this. It also makes it harder for regulators to track the scale of the problem.