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MVA White Collar Defense, Investigations, and Regulatory Advice Blog: A Small Step Toward Clarity? The CFPB Issues Policy Statement on “Abusiveness” Standard

February 2020

Charlotte Financial Regulatory Advice and Response Counsel Nicole Schiavo’s MVA White Collar Defense, Investigations, and Regulatory Advice Blog article titled, “A Small Step Toward Clarity? The CFPB Issues Policy Statement on “Abusiveness” Standard” was published on February 11.

The article

On January 24, 2020 the CFPB issued a long-awaited policy statement about the meaning of “abusiveness” in the Bureau’s frequently-used enforcement weapon, 1031(d) of the Dodd-Frank Act, commonly referred to as UDAAP.  Unlike the standards for unfairness and deceptiveness (the “U” and “D” in UDAAP), there is virtually no historical guidance on the meaning of abusiveness, yet the CFPB has applied the abusiveness standard since it commenced operation in 2011 and has brought 32 enforcement actions that involved an abusiveness claim. Enforcing violations of an undefined standard through what can affectionately be described as an “I’ll know it when I see it” approach has confused and frustrated the financial services industry for years.

To view the complete blog article, please click here.