US consumer finance watchdog formally kills Biden-era bad actor registry

Core Points - The U.S. Consumer Financial Protection Bureau (CFPB) has officially repealed a registry for non-bank financial companies that violated consumer laws, citing that the costs outweighed the benefits to the public [1][2][3] - The repeal is part of a broader initiative by the Trump administration to reduce the legal powers of the CFPB, which has been criticized by some officials who advocate for its complete shutdown [2] - The CFPB's cost-benefit analysis indicated that the offender registry duplicated an existing multi-state registry system, resulting in minimal benefits and an estimated cost reduction of about $360 per company [3] Industry Reactions - Industry organizations and state regulators have expressed support for the decision to rescind the registry, aligning with the CFPB's rationale regarding cost-effectiveness [4] - Conversely, consumer advocacy group Better Markets has raised concerns, noting that 50% of the U.S. lending market is now controlled by non-banks, which could increase risks to consumers and financial stability, as well as reduce deterrence for repeat offenders [4]