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CFPB Issues Guidance on Abusive Conduct in Consumer Financial Markets
On April 3, 2023, the CFPB released a policy statement that expanded upon the prohibition on abusive conduct established by the 2010 Dodd-Frank Act. For decades, abusive behavior was a field of consumer protection covered by the Federal Trade Commission. Yet the FTC’s policy statements on abusive, unfair and deceptive practices set self-imposed restrictions that developed widely accepted parameters for consumers and businesses alike. Meanwhile, the CFPB’s policy statement on abusive behavior lacks limits and fails to consider costs and benefits.
The CFPB’s policy statement is based on a false premise and makes it virtually impossible for creditors to operate a business that avoids the pitfalls of a far-reaching standard of “abuse.” This will ultimately harm consumers, who need access to credit now more than ever.
Related Commentary & Articles:
- Consumer Finance Monitor, “A Deep Dive Into the Consumer Financial Protection Bureau’s Policy Statement on Abusive Acts and Practices Under the Consumer Financial Protection Act,” 11/9/23
- The Hill, “How the Supreme Court could move to rein in the Consumer Financial Protection Bureau,” 10/3/23
- The Hill, “The cost of the unaccountable CFPB keeps getting higher,” 9/24/23
- Letter from Senator Tim Scott on CFPB Data Breach, 4/19/23
- Politico, “CFPB says employee breached data of 250,000 consumers in ‘major incident’,” 4/19/23
- Catalyst, “CFPB Likely Skirted Transparency Laws with Partisan Fellowships,” 4/18/23
- Testimony of Brian Johnson before the Subcommittee on Financial Institutions and Monetary Policy, 3/9/23
- The Washington Post, “Why Americans need protection from the Consumer Financial Protection Bureau,” 2/15/23
- The Wall Street Journal, “The CFPB Engages in Legal Deception,” 12/4/22
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