UDAAP Exam Manual Changes


What It Is

The CFPB’s changes to the UDAAP Exam Manual in March 2022 represent an enormous self-expansion of the agency’s authority that stands contrary to law and the intent of Congress. For these reasons, CBA and other leading financial groups filed a lawsuit in September 2022 challenging the CFPB's UDAAP announcement. In September 2023, the court ruled in favor of CBA and other plaintiffs, affirming CBA’s long-held belief that the CFPB exceeded its statutory authority outlined in the Dodd-Frank Act.

Why It Matters

Congress did not authorize or intend for the CFPB to “fill gaps” between the clearly articulated boundaries of anti-discrimination statutes with its UDAAP authority. Not only do these actions raise profound substantive and procedural legal concerns, but they also threaten banks’ ability to deliver the products and services millions of Americans rely on to meet their financial needs.

What We Believe

CBA members firmly oppose discrimination in any form and strongly support fair, objective, and transparent enforcement of civil rights and fair lending laws.
The Bureau’s action has created significant uncertainty in the financial marketplace to the detriment of consumers and banks alike. These changes would affect every consumer product and service banks offer today and could limit access to the financial tools millions of hardworking Americans rely on to meet their needs.
The Bureau must introduce policy considerations using proper procedure.


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