Goodwin Procter Consumer Finance Enforcement associate Kyle Tayman was recently published in Bloomberg BNA’s Banking Report for their article, CFPB’s Question Unanswered—What is ‘Abuse’? The article takes the position that the Consumer Financial Protection Bureau’s silence on what exactly constitutes an ‘‘abusive’’ practice under the Dodd-Frank Act’s provisions governing ‘‘unfair, deceptive, or abusive’’ acts or practices, is problematic for consumer finance companies seeking to understand their compliance obligations, and is contrary to Congressional intent in passing the UDAAP provision. Consumer finance lenders and companies should continue to monitor CFPB enforcement actions, while advocating for CFPB to implement rulemaking consistent with what Congress intended.
