CFPB Increasingly Aiming "Abusiveness" Claims At Servicemember Products And Services

Are servicemembers more financially vulnerable than the civilians they protect? Recent enforcement actions suggest that, in the CFPB's view, they are. While the Servicemembers Civil Relief Act (SCRA) provides more financial protections to servicemembers than civilian consumers have, the Bureau has also begun to use the CFPA to assert "abusive" claims in cases involving alleged acts or practices affecting servicemembers.

The "abusive" prong of the CFPA's UDAAP provision provides that the Bureau can declare an act or practice abusive when it takes unreasonable advantage of consumers in certain circumstances that may make them more vulnerable, such as when the customer may not understand the risks, costs, or conditions of the product or service, or where the customer is unable to protect his or her interest in selecting or using the product or service. The "abusive" prong may capture acts that are not deceptive or unfair, and in some cases may depend on facts about