Compliance Insights compliance-newsletter-march-2020

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 1