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

Judge grants win to ABA, Chamber in lawsuit over CFPB UDAAP exam manual

September 8, 2023
Reading Time: 2 mins read
CFPB seeks feedback on consumers’ ability to obtain information from large institutions

A federal judge in Texas today granted summary judgment to ABA, the Texas Bankers Association, the U.S. Chamber of Commerce and several other co-plaintiffs in their challenge to the CFPB’s UDAAP exam manual, in which the bureau unlawfully expanded the statutory definition of “unfairness” to encompass discrimination. In a sharp rebuke of the agency, the judge issued a final judgment setting aside the CFPB’s March 2022 interpretation of its UDAAP authority.

The court granted additional protection to the plaintiffs’ members by issuing a final judgment prohibiting the CFPB from “pursuing any examination, supervision, or enforcement action against any member of a plaintiff organization based on the CFPB’s interpretation of its UDAAP authority.”

“While we’re still reviewing the final judgment and its full implications, we’re pleased with today’s U.S. District Court ruling that makes clear the CFPB exceeded its statutory authority when it ‘updated’ its exam manual and announced an open-ended and novel power to examine banks for alleged discriminatory conduct,” ABA President and CEO Rob Nichols said.

The judge agreed with ABA that the CFPB clearly exceeded its statutory authority under the Dodd-Frank Act. In addition, the judge upheld ABA’s challenge to the exam manual on the grounds that it was the product of an unconstitutionally funded agency. (Texas is covered by an appellate court ruling, currently being appealed to the Supreme Court, that found the bureau’s funding violates the Appropriations Clause of the Constitution.)

While ABA repudiates discrimination of any kind, it argued in the case that the bureau’s unfair, deceptive and abusive acts or practices, or UDAAP, authority cannot be used to extend the fair lending laws beyond the bounds set by Congress. “We strongly support the fair enforcement of nondiscrimination laws, but the bureau’s extraordinary expansion of its regulatory reach crossed the line,” Nichols added. “We hope this ruling sends a clear message to the bureau and all federal regulators that they must operate within the boundaries set by Congress.”

ADVERTISEMENT
Tags: CFPB reformEnforcementFair lendingUDAAP
ShareTweetPin

Related Posts

OFAC updates license application portal

ABA: Banks need guidance on new OFAC recordkeeping requirements

Compliance and Risk
May 30, 2025

ABA said that banks need further guidance from OFAC about how to implement its new recordkeeping requirements, as they deviate from existing bank practices and requirements.

Fed announces pilot climate exercise for large banks

ABA: Education, due process expansion needed for voluntary climate disclosures

Compliance and Risk
May 30, 2025

Citing stakeholder confusion related to the cost and usefulness of certain climate-related information, ABA urged the Global Reporting Initiative to enhance its education efforts and due processes in evaluating climate disclosure proposals.

Survey: Fraud resolution boosts bank customer satisfaction

Fed: One in five Americans victims of financial fraud, scams

Compliance and Risk
May 29, 2025

More than one in five U.S. adults have experienced financial fraud or scams involving their money, with older adults more likely to experience fraud than younger individuals, according to a new survey by the Federal Reserve.

ABA faults banking regulators for confusing CRA rule rollout

OCC releases CRA evaluation schedule for Q3, Q4

Compliance and Risk
May 29, 2025

The OCC has issued the list of institutions scheduled for Community Reinvestment Act evaluations during the third and fourth quarters of 2025.

Survey: Debit cards remain most popular payment product

ABA seeks repeal of Reg II debit card interchange price control rule

Newsbytes
May 29, 2025

In response to a Trump administration effort to ease regulation, ABA is urging officials to rescind the regulation implementing the Dodd-Frank Act’s restrictions on debit card interchange fees.

Basel Committee: Permissionless blockchains pose ‘novel’ risk challenges for banks

ABA’s Ybarra: Stablecoin regulation must not undermine the banking system

Newsbytes
May 29, 2025

Establishing a robust regulatory framework for stablecoin that integrates with, rather than disintermediates, the banking industry is critical to ensure financial stability and the ongoing vibrancy of the U.S. economy, ABA's Brooke Ybarra writes in a new opinion...

NEWSBYTES

ABA: Banks need guidance on new OFAC recordkeeping requirements

May 30, 2025

ABA: Education, due process expansion needed for voluntary climate disclosures

May 30, 2025

Fed: One in five Americans victims of financial fraud, scams

May 29, 2025

SPONSORED CONTENT

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
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 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.