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ARTICLE · 11 JUNE 2024

CFPB Circular Targets "Deceptive" Fine Print

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On June 4, the CFPB issued a circular targeting the deceptive use of fine print in consumer financial contracts to include unlawful or unenforceable terms.

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On June 4, the CFPB issued a circular targeting the deceptive use of fine print in consumer financial contracts to include unlawful or unenforceable terms. In a press release issued the same day, the CFPB stressed that these terms may deceive consumers into believing they have relinquished certain rights and protections, guaranteed to them under existing consumer protection laws.

In the circular, the Bureau argued that the inclusion of such terms can constitute a violation of the Consumer Financial Protection Act's prohibition on deceptive acts or practices. See 12 U.S.C. §§ 5531; 5536. The agency stated that including a material unenforceable term in a consumer contract is deceptive, because it misleads consumers into believing the contract term is enforceable.

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