ICBA expressed support for new legislation designed to bring clarity and balance to the Consumer Financial Protection Bureau’s application of its authority to oversee unfair, deceptive, and abusive acts and practices, known as UDAAP.
Legislative Details: The Rectifying UDAAP Act from Rep. Andy Barr (R-Ky.) 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: In a letter to Barr—who chairs the House Financial Services Committee’s Subcommittee on Financial Institutions—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.