Banking and Finance Law Daily Wrap Up, CONSUMER FINANCIAL PROTECTION BUREAU—CFPB rescinds public release of final decisions regarding nonbank supervision, (Sep 24, 2025)

By Joe Cox, J.D.

The CFPB perceived threat of public disclosure pressured businesses to consent to designation for supervision.

The Consumer Financial Protection Bureau has issued a final rule rescinding a trio of rules from 2022 and 2024 that provided for public release of final decisions and orders by the CFPB director in the context of designation for supervision of nonbanks. The Bureau had released a proposed rule in May contemplating such a recission and received eight comments which it considered in its final ruling. The final rule takes effect Oct. 27, 2025.

The rules being rescinded had been codified at 12 C.F.R. Part 1091. In April 2022, the CFPB had made a Rule establishing supervisory rights over nonbanks when there is reasonable cause that they pose risks to consumers. A second rule in November 2022 concerned public release of decisions and orders, with yet a third rule in April 2024 updating procedures for designating potentially risky nonbanks for supervision (see Banking and Finance Law Daily, May 13, 2025). These are the rules which have been almost completely rescinded by the new rule.

The rationale for change in the rules was discussed at length and it focused mostly on an inappropriate chilling effect created by public release. CFPB noted that if a nonbank entity was designated for supervision and it consented to such designation, no public final decision or order would be released. But if the entity did content the designation, it could result in the public release of an order indicating that the entity “is engaged, or has engaged, in conduct that poses risks to consumers.” Several of the comments reflected agreement with the CFPB’s concern that public releases of decisions and orders created potential of unfair reputational harm and encouraged businesses to forego potentially meritorious arguments in favor of a peace that included no public disclosure.

That said, several other comments opposed the revision and favored release. Those included comments from a pair of consumer advocacy organizations. These commenters emphasized concerns about transparency for the public and the ability to make sure the CFPB was fulfilling its mission in the absence of published orders and decisions. Ultimately, the CFPB decided to restore the 2013 standard which treated decisions and orders in supervisory designation proceedings as confidential supervisory information.

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