CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » CFPB’s UDAAP symposium focuses on defining ‘abusive’
Policy & Issues

CFPB’s UDAAP symposium focuses on defining ‘abusive’

June 28, 2019

CUNA attended Wednesday’s symposium hosted by the Consumer Financial Protection Bureau (CFPB) which focused on defining “abusive” under Unfair, Deceptive and Abusive Acts or Practices (UDAAP). CFPB Director Kathy Kraninger and Deputy Director Brian Johnson made remarks, and there were two panels of legal and academic UDAAP experts.

Tuesday’s conversation generally focused on the statuary history of “abusive,” the role of cost-benefit analysis and whether behavioral economics can play a role in determining abusive behavior.

The first panel featured academics discussing policy issues related to the abusive standard under the Dodd-Frank Act, the second panel featured legal experts examining how the abusive standard has been used in practice.

Additional details can be found on CUNA’s Removing Barriers Blog.

CUNA has called on the CFPB to provide clarity regarding UDAAP, and in a letter to Kraninger when she was confirmed in December that it would support a rulemaking that including the following actions:

  • Solicit feedback on whether to eliminate or clarify the overly-subjective “abusive” prong of UDAAP and whether other aspects of its UDAAP authority should be changed;
  • Clarify that previous enforcement actions or consent orders that conflict with statutory or judicial precedent create no new expectations for compliance; and
  • Clarify and reaffirm the bureau’s narrow authority under the Dodd-Frank Act in regulating the business of insurance—particularly as it applies to credit unions and banks selling insurance—and that UDAAP is not a backdoor to regulate insurance activities.

The event was a first in a proposed symposia series from the CFPB to be conducted over the next few months. Additional dates and details will be released by the CFPB in the coming weeks, but topics covered during the series will include:

  • Behavioral law and economics;
  • Small business loan data collection;
  • Disparate impact and the Equal Credit Opportunity Act;
  • Cost-benefit analysis; and
  • Consumer authorized financial data sharing.

KEYWORDS cfpb
Credit Union Magazine - Winter 2020

Winter 2020

Credit Union Magazine’s Winter 2020 edition features CUNA’s 2021 lending outlook, CEO insights on adjusting to the pandemic, and board recruitment strategies.
Digital Edition •  Subscribe

Trending

  • NCUA proposes raising threshold for ‘complex’ CUs

  • Compliance: 2020 Year in Review, Checklist now available

  • NCUA’s 2021 supervisory priorities reflect COVID effects

Tweets by CUNA_News

Polls

Will you ask employees to receive the coronavirus vaccine?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors