Banking and Finance Law Daily Wrap Up, CONSUMER FINANCIAL PROTECTION BUREAU—CFPB rescinds adjudication amendments, nonbank registry rule, and withdraws contract-registry proposal, (Oct 28, 2025)

By Shashi Kant, BALLB, LLM.

The Bureau ended three recent rulemakings, removing adjudication changes, repealing the nonbank registry, and withdrawing the proposed form-contract registry.

The Consumer Financial Protection Bureau (CFPB) has issued two rescission notices of final rules and one withdrawal notice of a proposed rule that collectively eliminate several rulemakings adopted or proposed between 2022 and 2024. The Bureau rescinded amendments to its “Rules of Practice for Adjudication Proceedings,” revoked the nonbank registry rule established in 2024, and withdrew its 2023 proposal on form-contract registration. Each action follows a May 2025 proposal and reflects the Bureau’s determination that the affected measures are not necessary to carry out its responsibilities under the Consumer Financial Protection Act of 2010 (see Banking and Finance Law Daily, May 12, 2025). These actions are effective upon publication of the notices in the Federal Register on Oct. 29, 2025.

Procedural rule rescission. The CFPB’s first action reverses amendments made to its administrative adjudication procedures adopted on Feb. 22, 2022 (87 FR 10028), and March 29, 2023 (88 FR 18382). Those earlier rules were intended to provide greater procedural flexibility in the agency’s enforcement process. In 2022, the Bureau stated that the changes would expand discovery depositions, clarify deadlines, and allow the bifurcation of proceedings to improve efficiency (see Banking and Finance Law Daily, Feb 18, 2022). The 2023 update added similar measures, including allowing hearings to proceed in multiple stages and granting the Director authority to decide dispositive motions (see Banking and Finance Law Daily, Feb. 27, 2023). In May 2025, the Bureau proposed rescinding those amendments, citing concerns about provisions transferring decision authority from presiding hearing officers to the Director. In the final rule (RIN 3170–AB33; Docket No. CFPB-2025-0012), the CFPB removed those provisions and other related changes to deposition and issue-exhaustion procedures under 12 C.F.R. part 1081.

The Bureau retained two sections from the prior amendments. Section 1081.114(a) preserves the recalculation of deadlines from ten to fourteen days, and 1081.206 continues to allow the electronic provision of documents to respondents. Limited technical edits were also retained to clarify references to “the Director,” “the Office of Administrative Adjudication,” and “the Office of Enforcement.” According to the Bureau, six comment letters were received on the proposal. Three supported rescission, two opposed, and one supported in part. The Bureau stated that it consulted with the prudential regulators and the Federal Trade Commission in accordance with section 1022(b)(2)(B) of the Act. The Office of Information and Regulatory Affairs determined that the final rule is not a significant regulatory action under Executive Order 12866, and the Bureau certified that it will not have a significant economic impact on a substantial number of small entities.

Nonbank registry rescission. The second action eliminates the registry adopted on July 8, 2024 (89 FR 56028), which required nonbank covered persons subject to public agency or court orders to register those orders with the Bureau and provide annual compliance statements. That rule, codified at 12 C.F.R. part 1092, established a public database designed to identify companies repeatedly subject to enforcement actions (see Banking and Finance Law Daily, June 4, 2024). At the time of adoption, the Bureau stated that the registry would help detect and deter corporate recidivism by allowing regulators and the public to view covered orders in one place. Covered entities were required to submit identifying information, copies of the orders, and annual attestations from executives regarding compliance.

In the May 2025 rescission proposal (90 FR 20406), the Bureau reported that the rule imposed substantial reporting and maintenance costs on registrants and on the agency. The final rescission (RIN 3170–AB32; Docket No. CFPB-2025-0011) cites estimated paperwork burdens of more than 271,000 hours for covered entities and projected government operating costs of approximately $2.5 million annually. The Bureau stated that the registry is not necessary to carry out its market monitoring or supervisory responsibilities under sections 1022(b), 1022(c)(1)-(4), and 1024(b) of the Consumer Financial Protection Act. It also referenced its April 11, 2025, announcement that it would not prioritize enforcement or supervision actions against entities missing registry deadlines. The Bureau reported that it consulted with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Federal Trade Commission, and the Farm Credit Administration before finalizing the rescission. It certified that the action will not have a significant economic impact on a substantial number of small entities.

Withdrawal of proposed form-contract registry. The third action withdraws the Bureau’s Feb. 1, 2023, proposal (88 FR 6906) to require supervised nonbanks to register and report standard form-contract clauses that waive or limit consumer legal rights. The 2023 proposal would have required nonbank lenders, servicers, and other supervised entities to file annual reports listing clauses such as arbitration agreements, limits on liability, restrictions on forum or time to bring claims, and other provisions affecting consumer rights (see Banking and Finance Law Daily, Jan. 11, 2023). The CFPB also proposed to make the information publicly available to facilitate risk-based oversight. The Bureau received 35 unique comments on the proposal, including from Members of Congress, Tribal governments, trade associations, the Small Business Administration Office of Advocacy, government-sponsored enterprises, nonprofit coalitions, and individuals. Comments in opposition cited paperwork burdens, inclusion of lawful contract provisions, and duplication of other disclosure requirements.

In the withdrawal notice (Docket No. CFPB-2023-0002), the Bureau stated that additional legislative rulemaking on the matter is not necessary or appropriate. The CFPB determined that the potential costs of implementing the proposed registration and publication system were not justified by potential benefits and stated that it will take no further action on the proposal.

Effective date. The three actions, rescinding the 2022 and 2023 adjudication amendments, rescinding the 2024 nonbank registry, and withdrawing the 2023 proposed rule on form contracts, take effect upon publication in the Federal Register, presently scheduled for Oct. 29, 2025.

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