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ARTICLE · 08 MAY 2023

Take 2: CFPB Provides New Guidance About What Constitutes "Abusive" Acts And Practices

Morrison Foerster
Morrison Foerster
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On April 3, 2023, the Consumer Financial Protection Bureau (CFPB or "Bureau") issued new guidance about what constitutes an abusive act or practice under the Consumer Financial Protection Act...

United StatesConsumer Protection
Maria B. Earley
Maria B. Earley
Nancy Thomas
Nancy Thomas
Rachel Ross
Rachel Ross
Rebecca Tesfaye
Rebecca Tesfaye
Jason Shafer
Jason Shafer
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On April 3, 2023, the Consumer Financial Protection Bureau (CFPB or "Bureau") issued new guidance about what constitutes an abusive act or practice under the Consumer Financial Protection Act (the "Policy Statement"). This statement comes nearly two years after the CFPB rescinded its initial abusiveness policy statement and takes an examples-based approach that differs from the approach the CFPB took in the original statement. Not surprisingly, the CFPB continues to take an expansive view of the scope of abusiveness and its authority to bring enforcement actions challenging allegedly abusive conduct. In this client alert, we outline the new approach and key takeaways below.

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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