AARP Applauds New Financial ‘Bad Actor’ Registry

Consumers will soon have an easier way to get information they need to protect themselves from unscrupulous financial companies, thanks in part to advocacy from AARP.

AARP applauds the Consumer Financial Protection Bureau (CFPB) for finalizing a rule this month creating a public registry of firms with a track record of illegal behavior. AARP submitted comments to the CFPB last year in support of the registry.

The rule applies to “nonbank” financial companies, which include payday lenders, auto and home lenders, student loan servicers, debt collectors and others.

Companies must register with the agency if they have broken consumer protection laws and are subject to a court order or regulatory action as a result. The reporting requirements will be phased in starting this fall, and the bureau plans to publish information about the violations on the CFPB website.

The registry will “empower consumers to protect themselves” by helping them “make informed decisions about financial institutions they put their trust in,” said Clark Flynt-Barr, an AARP government affairs director for financial security.

“The ability to look up these orders will also incentivize firms to treat customers well and avoid harmful practices,” Flynt-Barr added.

In remarks made when announcing the rule this month, CFPB Director Rohit Chopra said the registry will help regulators and law enforcement agencies monitor and track repeat offenders, who too often treat fines and penalties for illegal activity “as the cost of doing business.”

“Throughout our economy, we have seen fraudsters and scam artists get caught in one part of the country and restart their scheme in a new place hoping to not get caught again,” he said.

AARP has long fought for laws and policies to stop consumer fraud. And through AARP Fraud Watch Network, we teach older adults how to recognize and prevent scams.

Read our comments in support of the CFPB registry and keep up with AARP’s scams and fraud coverage. Sign up for free biweekly Watchdog Alerts to stay informed about the latest tactics.

Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling 855-411-CFPB (2372).