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Consumer Financial Regulator Limits Its Powers Against Abuses

Jan. 27, 2020, 11:01 AM

The Consumer Financial Protection Bureau is putting limits on the ways that it will use its power to pursue banks and other financial companies for abusive practices against consumers.

The 2010 Dodd-Frank Act gave the CFPB the unique authority to go after companies for abusive practices alongside long-established standards for pursuing unfair or deceptive acts and practices (UDAP). The financial services Industry has long complained that there has been little guidance as to what constitutes an abusive practice.

Under a new policy statement obtained Friday by Bloomberg Law, the CFPB said it will no longer bring abusiveness claims against companies...

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