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On February 1, 2023, the CFPB published a proposed rule in the Federal Register to establish a registry of supervised nonbanks that use form contracts imposing terms and conditions that seek to limit consumer protections. The proposed registry is aimed at increasing transparency and oversight of nonbank entities, many of which operate in fintech and BaaS ecosystems as partners to sponsor banks. The rule signals the CFPB's intent to bring greater regulatory scrutiny to nonbank fintechs that rely on bank partnerships for lending and financial services. This rulemaking is part of the broader 2022-2023 trend of regulators increasing focus on fintech third-party risks, including data security, consumer protection, and compliance with fair lending standards.
Verified from source: The CFPB published a proposed rule (88 FR 6906) on 02/01/2023 to create a registry of supervised nonbanks that use form contracts to impose terms and conditions that seek to waive or limit consumer legal protections, codified at 12 CFR 1092. The proposal was later withdrawn on 10/29/2025.
- Nonbank fintechs operating through BaaS partnerships may face new registration and disclosure requirements
- Sponsor banks may need to enhance due diligence on fintech partners' use of form contracts
- Increased CFPB scrutiny of nonbank practices could raise compliance costs across the BaaS value chain