CFPB Publishes New Policy Statement On Abusive Acts And Practices

On April 3, 2023, the CFPB published a new official statement of policy on the authority that Congress passed in the Consumer Financial Protection Act of 2010 ("CFPA"), codified at 12 U.S.C. § 5536(a)(1)(B), banning "abusive conduct" in connection with the offering or provision of consumer financial products or services. A copy of the new Policy can be found here. It is broad and tilted heavily in favor of consumers.

This is the CFPB's second effort at promulgating an official statement of policy on abusive acts and practices. On March 11, 2020, the CFPB announced that it was rescinding its January 24, 2020 policy statement, "Statement of Policy Regarding Prohibition on Abusive Acts and Practices," which was published four days after the Trump administration ended and the Biden administration began.¹ The CFPB withdrew its prior policy based upon its finding that, "The 2020 Policy Statement was inconsistent with the Bureau's duty to enforce Congress's standard and