This story appeared in Bank Digest.
House Financial Services Committee Chairwoman Maxine Waters (D-Calif) has issued a statement regarding the Consumer Financial Protection Bureau's policy statement on the Dodd-Frank Act's prohibition of unfair, deceptive, or abusive acts or practices (UDAAP) in the consumer financial marketplace.
According to Waters, "Director Kraninger's new policy creates new standards that must be satisfied before the Consumer Bureau will enforce the 'abusive' component of UDAAP, hampering the agency's ability to protect consumers or to punish bad actors. This policy will also hinder the Consumer Bureau's ability to hold entities accountable by rewriting the law to require a cost-benefit analysis when considering whether an act or practice is abusive. Even worse, it allows entities that engage in abusive conduct to avoid paying penalties, literally letting those who abuse consumers get off scot-free."