Ballard Spahr law firm has published an article today that indicates the Consumer Financial Protection Bureau is most likely in the midst of conducting active enforcement actions.
Their website (cfpbmonitor.com) is reporting:
While the CFPB’s choice of initial enforcement targets will undoubtedly be significant regardless of the kinds of violations the CFPB’s alleges, they will take on even more significance if the CFPB alleges that the target has engaged in “abusive” acts or practices. Most observers, ourselves included, expect the CFPB to use its enforcement authority, rather than its rulemaking authority, to set the standards for what is an “abusive” act or practice for purposes of the CFPB’s authority to prohibit acts or practices that are “unfair, deceptive or abusive.” In fact, it appears Director Cordray himself has confirmed that this will be the CFPB’s approach. An article appearing in today’s American Banker reporting on an interview with Mr. Cordray indicates that Mr. Cordray stated that he did not “anticipate [the CFPB] writing a rule around UDAAP.” Asked in a follow up question whether his statement meant that “people will mostly have to look at your actions as the model for how this new term in defined,” Mr. Cordray is reported to have responded “I think that’s probably right.”
CFPB Getting Ready to Set Rules by UDAAP Enforcement Actions by Steve Rhode
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