Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Monday, June 10, 2013

ABIA Report Examines CFPB Powers on ‘Abusive’ Acts or Practices

The CFPB is using enforcement actions rather than rulemaking to clarify what it means by “abusive” acts or practices, an outside counsel report from ABA’s American Bankers Insurance Association (ABIA) subsidiary remarked.

The CFPB recently used its powers under the Dodd-Frank Act to prohibit an “abusive” act or practice, a term added to the long-understood “unfair and deceptive” standard but that remains unclear. In an action against a Florida debt settlement company, the CFPB’s allegations of abusive acts or practices relied on two aspects of Dodd-Frank’s “abusive” definition: taking “unreasonable advantage of” customers’ “lack of understanding,” and consumers’ “reasonable reliance” on the efficacy of the firm’s services.

“Banks engaged in the sale of insurance should be aware of the circumstances under which acts or practices they use could be considered ‘abusive’ by the CFPB,” the report concluded.

Read the report.

Indicates ABA members-only material.
Not an ABA member?
Learn about the benefits of membership and ways to join here.

No comments:

Post a Comment

Please read our comment policy before making a comment.