Rep. Andy Barr (R-Ky.) formally introduced his ICBA-advocated bill to clarify the Consumer Financial Protection Bureau’s authority to oversee unfair, deceptive, and abusive acts and practices, known as UDAAP.
Legislative Details: The Rectifying UDAAP Act includes provisions to:
Require clear descriptions of acts or practices that are “abusive.”
Establish policies and procedures for the imposition of civil penalties.
Mandate cost-benefit analysis of any final rule under UDAAP.
Clarify that the bureau may not interpret its authority under UDAAP to include discriminatory practices.
ICBA Support: ICBA expressed support for the legislation in a letter to Barr last week. ICBA said:
The CFPB has exceeded its statutory authority under UDAAP and thereby threatened continued consumer access to financial services.
Barr’s bill would create a more transparent UDAAP with consistent and predictable application and more effective consumer protection.