Is the CFPB Going Away? What This Means for NBFIs

This commentary reviews the impact of the Consumer Financial Protection Bureau (CFPB) ceasing operations on Non-Bank Financial Institutions (NBFIs)

Key highlights include:
-- On February 8, 2025, the acting head of the CFPB instructed all Agency staff to cease supervision and examination activities.
-- With the immediate ceasing of operations, certain noteworthy efforts of the CFPB including the reduction of credit card fees, the removal of certain medical bills from consumers credit reports, or any pending litigation, are unlikely to move forward.
-- Overall, we see no immediate impact to the credit profile of consumer-focused non-bank financial institutions we rate from the potential shuttering of the CFPB.

"While the CFPB ceasing operations would remove a regulator, most consumer-focused NBFIs are under the purview of numerous other federal and state governmental bodies that provide oversight across the U.S. consumer lending sector, including the U.S. Department of Justice, state attorney generals, and numerous state agencies." said Mark Nolan, Vice President - North American Financial Institution Ratings.