ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Compliance and Risk

ABA urges CFPB to scrap ‘abusiveness’ statement as drafted

July 5, 2023
Reading Time: 1 min read
ABA urges CFPB to scrap ‘abusiveness’ statement as drafted

The American Bankers Association last week called for substantial revisions to the CFPB’s recently proposed guidance on the “abusiveness” standard as defined by the Consumer Financial Protection Act. The guidance outlines how the agency, under its current leadership, plans to analyze the statutory elements of abusiveness to identify unlawful conduct.

ABA raised several concerns about the statement as currently proposed. First, ABA noted that the statement’s examples of abusive conduct “reflect the CFPB’s unproved and untested allegations in enforcement actions,” not fact-based, reasoned decisions made by independent courts. The statement also fails to provide meaningful standards that the industry can use to identify and avoid abusive conduct, ABA added.

The association further pointed out that the bureau’s view of a consumer’s lack of understanding is unworkable. Under the Dodd-Frank Act, entities are prohibited from taking unreasonableness of a consumer’s “lack of understanding of the material risks, costs or conditions of the product or service.” However, ABA noted that the statement, as written, “disclaims all reasonable limits on its meaning, leaving the industry with little guidance,” and that the bureau takes a “paternalistic view of consumers.” That view, “coupled with ‘regulation by enforcement,’ is likely to lead to fewer choices for consumers,” ABA warned.

“The new policy statement is unlikely to stand the test of time and may be revised or rescinded by subsequent administrations,” the association said. “These swings in policy are not helpful for consumers or financial service providers. The policy statement’s vagueness and lack of clear boundaries free regulators to wield abusiveness authority inconsistently, which will encourage regulatory arbitrage by some and will undermine innovation and steady market performance.”

ADVERTISEMENT
Tags: CFPBComplianceDodd-FrankUDAAP
ShareTweetPin

Related Posts

New infographics provide advice for identifying money mules, check fraud

Banking agencies seek public comment on strategies to combat payments fraud

Compliance and Risk
June 16, 2025

The FDIC, Federal Reserve and OCC issued a request for comment on potential actions to help consumers, businesses and financial institutions mitigate risks related to payments fraud, particularly check fraud.

ABA, associations object to CFPB ‘junk fee’ label for mortgage-related fees

ABA urges CFPB to preserve streamlined mortgage relief option

Mortgage
June 16, 2025

The CFPB should retain a key provision of its pandemic-era servicing rules that allows servicers to offer streamlined loan modifications to borrowers based on incomplete applications for loss mitigation, ABA said.

Illinois lawmakers vote to delay implementation date for state interchange fee law

Illinois pushes back implementation date for state interchange fee law

Newsbytes
June 16, 2025

Illinois Gov. JB Pritzker signed into law a bill that extends by a year the effective date of a first-of-its-kind state law restricting interchange fees.

CFPB claims ‘complex’ pricing drives up cost of financial products

ABA, associations reiterate concerns about CFPB nonbank registry

Compliance and Risk
June 16, 2025

ABA joined two associations in reiterating their concerns about the CFPB’s nonbank registry, which the current bureau leadership has proposed to eliminate.

Republican AGs criticize hiring of OCC climate risk officer

Basel Committee issues voluntary climate disclosure framework

Compliance and Risk
June 16, 2025

Reflecting significant pushback from both ABA and U.S. banking agencies, the Basel Committee last week issued a framework for voluntary disclosure of climate-related financial risks for large international banks.

A Risk Manager’s Guide to the Reference Rate Transition

Credit-sensitive Libor replacements still seek traction

Commercial Lending
June 16, 2025

Looming volatility and recent developments may give AXI and Ameribor a boost

NEWSBYTES

Banking agencies seek public comment on strategies to combat payments fraud

June 16, 2025

ABA urges CFPB to preserve streamlined mortgage relief option

June 16, 2025

Illinois pushes back implementation date for state interchange fee law

June 16, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.