On February 6, 2020, the Consumer Financial Protection Bureau published a Statement of Policy Regarding Prohibition on Abusive Acts or Practices to “convey and foster greater certainty” regarding how it will apply the “abusiveness” standard in exercising its sweeping UDAAP authority under the Dodd-Frank Act. This is a welcome move by the Bureau, which previously had declined to provide rules or guidance to describe, let alone define, acts or practices deemed to be “abusive.” Instead, the Bureau required regulated entities to “read the tea leaves” based on allegations in enforcement actions and statements in its Examination Manual.
Read our client alert.