CFPB Rescinds Abusiveness Policy Statement To Help Protect Consumers – NMP Skip to main content

CFPB Rescinds Abusiveness Policy Statement To Help Protect Consumers

Navi Persaud
Mar 15, 2021
CFPB Logo

Then Consumer Financial Protection Bureau is rescinding its Jan. 24, 2020 policy statement, "Statement of Policy Regarding Prohibition on Abusive Acts or Practices." The CFPB plans to exercise supervisory and enforcement authority with the full scope of its statutory authority under the Dodd-Frank Act, as established by Congress, according to a press release.

The bureau made these changes in order to better protect consumers and the marketplace from abusive acts or practices. The CFPB is also looking to enforce the law as it was written by Congress. According to the CFPB, the Dodd-Frank Act prohibits companies from materially interfering with someone's ability to under a product or service, taking unreasonable advantage of someone's lack of understanding, taking unreasonable advantage of someone who cannot protect themself and taking unreasonable advantage of someone who reasonably relies on a company to act in their interests.

"The 2020 Policy Statement was inconsistent with the Bureau’s duty to enforce Congress’s standard and rescinding it will better serve the CFPB’s objective to protect consumers from abusive practices," according to the release.

The 2020 Policy Statement stated that the CFPB would decline to seek civil money penalties and disgorgement for certain abusive acts or practices. The CFPB deters abusive practices and compensates certain harmed consumers using penalties, so the Policy Statement undermined deterrence and was contrary to the CFPB’s mission of protecting consumers.

Click here to read more about the CFPB's plans moving forward.

Published
Mar 15, 2021
Regulatory Review, Reformatted

The progress made to date with NMLS modernization

Regulation and Compliance
Dec 01, 2021
November Surprise: Fed May Accelerate Tapering

Chairman Powell tells Congress of concerns about inflation, COVID-19 variant’s effect on recovery.

Regulation and Compliance
Dec 01, 2021
FHFA's 2022 Conforming Loan Limit Maxes Out At Nearly $1M

Baseline limit for Fannie, Freddie increases to $647,200, but for 'high-cost areas' loan ceiling set at $970,800 for single-family homes.

Regulation and Compliance
Dec 01, 2021
Regulators Are Back In The Saddle

There’s not only a new sherriff in town, it’s a whole gang of them.

Regulation and Compliance
Nov 29, 2021
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021
Regulators Renew Effort to Protect Against Foreclosures

CFPB, The Fed, FDIC and other agencies will watch for compliance with COVID-19 protections

Regulation and Compliance
Nov 10, 2021