CFPB issues policy statement to clarify 'abusiveness' standard

This story appeared in Bank Digest.     

The Consumer Financial Protection Bureau has issued a policy statement clarifying how it intends to apply the "abusiveness" standard in supervision and enforcement matters. Under Section 1031(a) of the Dodd-Frank Act, the Bureau may use its authority to prevent covered entities from engaging in abusive acts or practices in connection with consumer financial services or offerings.

According to the Bureau, since the Act's enactment almost 10 years ago, uncertainty remains as to the scope and meaning of "abusiveness." The policy statement, which is immediately applicable, is intended to provide clarity and foster greater certainty.