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ARTICLE · 16 MAY 2023

CFPB's Policy Statement On Abusive Acts Or Practices – Some Observations

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On April 3, 2023, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") issued a Policy Statement on Abusive Acts or Practices (the "Policy Statement").

United StatesConsumer Protection
Ori Lev
Ori Lev
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On April 3, 2023, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") issued a Policy Statement on Abusive Acts or Practices (the "Policy Statement"). The Policy Statement "explain[s] how the CFPB analyzes the elements of abusiveness" under the Dodd-Frank Act "with the goal of providing an analytic framework" for identifying abusive conduct. The Policy Statement sets forth a broad approach to assessing what constitutes abusive conduct (for example, suggesting that products or services may be inherently abusive if they are too complex to explain to consumers and that even unreasonable consumer confusion may form the basis of abusiveness). In that respect, it may be of limited utility to companies seeking to enhance compliance programs to meet CFPB expectations. But as it sets out—for the first time—a comprehensive assessment of how the CFPB will approach its exercise of this authority, companies should review the Policy Statement to identify areas where it

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