comment letter

Joint Trades Comment Response to CFPB Abusiveness Policy Statement

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Dear Director Chopra:

The Bank Policy Institute, American Financial Services Association, Consumer Bankers Association, Credit Union National Association, Mortgage Bankers Association, and the U.S. Chamber of Commerce are providing these comments in response to the Consumer Financial Protection Bureau’s Statement of Policy Regarding the Prohibition on Abusive Acts or Practices (Docket No. CFPB–2023–0018).  The Bureau asserts that the Statement became effective on April 12, 2023, but that the Bureau is nevertheless soliciting comments on it.  

We appreciate the Bureau’s effort to communicate how it “analyzes the elements of abusiveness through relevant examples, with the goal of clarifying the scope and application of the prohibition in the CFPA on “abusive practices.” While policy statements and supervisory guidance cannot in and of themselves create binding, enforceable legal obligations, they can help industry gain a better understanding of how an agency may approach a particular requirement or prohibition. We support the Bureau’s solicitation of comments on the Statement and recommend that the Bureau seek comment on all proposed guidance and policy statements. However, the Bureau should seek comment or otherwise solicit public input on guidance and policy statements (such as through the issuance of a Request for Information) prior to their effective dates so that input from the public can be appropriately addressed and incorporated in the final document. 

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To read the full letter, please click HERE.

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