The Consumer Financial Protection Bureau (CFPB) issued a policy statement Friday outlining its approach to the “abusiveness” standard in supervision and enforcement matters. CUNA has long recommended the CFPB act to clarify the scope and meaning of “abusiveness,” including in its comprehensive white paper sent to the CFPB on common-sense reforms.
CUNA is analyzing the policy statement to determine its impact, but believes the action is a step towards ending an “I know it when I see it” approach to its Unfair, Deceptive, Acts or Practices (UDAAP) authority.
Effective immediately, the Bureau’s policy statement identifies several key principles:
Additional details can be found on CUNA’s Removing Barriers Blog.