UDAAP

The Dodd-Frank Act added provisions allowing the Consumer Financial Protection Bureau (CFPB) to restrict “abusive” acts under their UDAAP authority. This is in addition to the Unfair and Deceptive Acts or Practices (UDAP) authority that existed under the FTC Act. These provisions under the Dodd-Frank Act could have the most impact on the operations of our member banks, both with regard to possible enforcement actions and upcoming rulemaking that would interpret these provisions. Examination guidelines issued by the CFPB also address UDAAP practices.
  • July 31, 2017
    July 31, 2017 The Honorable Melvin L. Watt Director Federal Housing Finance Agency 400 7th Street, SW Washington, DC 20219 cc: Office of Housing and Regulatory Policy RE: Improving Language Access in Mortgage Lending and Servicing Dear Director Watt: The American Bankers Association (ABA), the Consumer Bankers Association (CBA), the Housing Policy Council of the Financial Services Roundtable (HPC...
  • June 8, 2017
    On Thursday, June 8, 2017, the CFPB announced it had sent letters to top retail credit card companies encouraging the use of more transparent transactions. The letter addresses the agency’s concerns with retailers using deferred-interest promotions for credit cards. “With its back-end pricing, deferred interest can make the potential costs to consumers more confusing and less transparent,” said...
  • March 30, 2017
    CBA LIVE: Where [ it ] Begins Kicks Off in Dallas on Monday With bags, boots, and tickets in hand, we are rolling out to Dallas. Next stop, CBA LIVE. With record-breaking attendance, some members of the CBA Team are already on the ground preparing for the arrival of over 1,400 retail banking leaders. Can’t wait to take part in the action? Neither can we. Here is a preview of what to expect at...
  • December 7, 2016
    On Wednesday, December 7, 2016, the CFPB took action against three reverse mortgage companies for alleged deceptive advertisements, such as claiming that consumers could not lose their homes. The Bureau ordered American Advisors Group, Reverse Mortgage Solutions, and Aegean Financial to cease deceptive advertising practices, implement systems to ensure they are complying with all laws, and pay...
  • October 28, 2016
    Crystal Ball: the CFPB’s 2017 Priorities During a speech earlier this week, CFPB Director Richard Cordray outlined the Bureau’s three priority areas for enforcement actions and supervision in 2017: consumer complaints, redlining and Real Estate Settlement Procedures Act (RESPA) violations. In light of the recent Appeals Court decision, which rejected the CFPB’s interpretation of portions of RESPA...
  • October 13, 2016
    On Wednesday, October 13, 2016, the CFPB entered into a consent order with Navy Federal Credit Union for a number of unfair, deceptive, abusive acts or practices (UDAAP) violations between January of 2013 and July of 2015 related to its in-house collection practices. The Bureau alleges Navy Federal contacted hundreds of thousands of consumers by letter or phone expressly or impliedly threatening...
  • October 11, 2016
    On Tuesday, October 11, 2016, the D.C. Circuit Court of Appeals handed down a ruling in the much anticipated case of PHH Corp. v. CFPB , which questioned whether the CFPB is constitutional. This case began as a CFPB enforcement action against mortgage lender PHH for alleged violations of Section 8 of the Real Estate Settlement Procedures Act (RESPA). In an administrative action before an...
  • October 5, 2016
    On Wednesday, October, 5, 2016, House Financial Services Committee Ranking Member Maxine Waters (D-CA) led ten other Democratic members in a letter to several governmental agencies expressing the need to strengthen rules regarding incentive-based compensation at financial institutions. The letter, was sent to the Federal Reserve, OCC, FDIC, National Credit Union Administration, Federal Housing...
  • September 29, 2016
    On September 29, 2016, Wells Fargo CEO and Chairman John Stumpf returned to Capitol Hill for a hearing before the House Financial Services Committee Thursday, nearly a week and a half after his testimony before the Senate Banking Committee. The hearing, entitled “Holding Wall Street Accountable: Investigating Wells Fargo’s Opening of Unauthorized Customer Accounts,” featured testimony from Mr...
  • September 20, 2016
    On Tuesday, September 20, 2016, the Senate Committee on Banking, Housing and Urban Affairs held a hearing, “An examination of Wells Fargo’s Unauthorized Accounts and Regulatory Response.” Witness panels included testimony from Wells Fargo Chairman and CEO John Stumpf; Comptroller of the Currency Tom Curry; CFPB Director Richard Cordray; and Los Angeles City Attorney, Chief Deputy James Clark...

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