Dodd-Frank News Center

Waters says CFPB's new UDAAP policy statement will harm consumers

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."

CFPB updates HMDA Small Entity Compliance Guide

This story appeared in Bank Digest.     

The Consumer Financial Protection Bureau has published an updated version of the Home Mortgage Disclosure Act Small Entity Compliance Guide. Changes to the Guide include updates to incorporate content from the HMDA Final Rule issued in October 2019.

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.