Rep. Blaine Luetkemeyer (R-Mo.) yesterday introduced H.R. 5112, the Unfair or Deceptive Acts or Practices Uniformity Act, which would grant the same UDAP enforcement authority on the Consumer Financial Protection Bureau that other financial regulators have.
Under the Dodd-Frank Act, the CFPB has authority to take action against “unfair, deceptive or abusive” acts or practices, known as UDAAP. However, the “abusive” standard is not well-defined and invites compliance uncertainty and litigation risk. Thus, the bill would remove the “abusive” term from the statute.
Luetkemeyer’s bill would also require the CFPB to comply with requirements applicable to the Federal Trade Commission when it conducts rulemaking relating to UDAPs in the commercial sphere, and to consult with an institution’s primary federal regulator before taking UDAP-related action.
