QTR. 1 | 2020
lll IN THIS ISSUE
> CFPB Releases Policy
Statement on Abusiveness
> Supervisory Highlights
Illustrate Key Compliance
Concerns
> Remittance Transfer Rule
Provider Relief Considered
> HMDA Small Entity Guide
Released
> FDIC Ombudsman Office Shine
Light on Compliance Issues
> HMDA Final Rule and New
Guidance Rule
CFPB Releases Policy
Statement on Abusiveness
On Jan. 24, 2020, the Consumer Financial Protection Bureau
(CFPB) issued a Policy Statement providing a framework for
how it intends to apply supervision and enforcement authority to
its abusiveness standard. The Dodd-Frank Act, which became
law in 2010, added the abusive category to the existing unfair
or deceptive acts or practices (UDAP), expanding the rule
under the Federal Trade Commission and National Credit Union
Administration’s authority with the broader reach of unfair,
deceptive, or abusive acts or practices (UDAAP).
This new Policy Statement constitutes an exemption from the
notice and comment rulemaking requirements, and is intended
to provide information regarding the CFPB’s general plans to
exercise its discretion. It does not impose any new or revised
recordkeeping, reporting or disclosure requirements.
What’s Abusive?
What constitutes an
“abusive” act or practice?
What exactly is a covered
institution expected to do,
or not do, to avoid a UDAAP
violation? Because the
uncertainty has created an
beneficial to consumers,
the CFPB has attempted to
clarify its standards in order
to achieve greater certainty
and foster compliance.
Continued on page 2
impediment to providing
otherwise lawful financial
products or services
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