The Consumer Financial Protection Bureau said it is rescinding its January 2020 “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.”
CFPB rescinds abusiveness policy statement
March 12, 2021 / By ICBA
The Consumer Financial Protection Bureau said it is rescinding its January 2020 “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.”
The Consumer Financial Protection Bureau said it is rescinding its January 2020 “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.”
Background: The 2020 statement covers how the CFPB applies the “abusiveness” standard in supervision and enforcement matters under the Dodd-Frank Act. It said the CFPB will apply principles of consumer harms that outweigh benefits, standalone abusiveness violations, and monetary relief when there has been a lack of effort to comply with the law.
What's New: In Thursday's announcement, the CFPB said the policy statement was inconsistent with its enforcement duty, citing a provision stating that it would decline to seek civil money penalties and disgorgement for certain abusive acts or practices.
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