Examining The Cfpbs Targeting Of Discrimination In Consumer Finance Through Udaap

Examining The Cfpb S Targeting Of Discrimination In Consumer Financ Examining the cfpb’s targeting of discrimination in consumer finance through udaap february 6, 2023 under the biden administration, consumer financial protection bureau director rohit chopra has dramatically increased the substantive reach of the cfpb’s use of guidance documents and examination and supervision powers. On january 31, 2023, the federalist society’s regulatory transparency project hosted a virtual event titled “examining the cfpb’s targeting of discrimination in consumer finance through udaap. the following is the audio from the event.

Deep Dive Episode 250 юааexaminingюаб юааthe Cfpbтащsюаб юааtargetingюаб Of Under the biden administration, consumer financial protection bureau director rohit chopra has dramatically increased the substantive reach of the cfpb’s use. This includes the articulation of a new standard of unfair, deceptive, or abusive acts or practices (udaap) that includes allegedly discriminatory practices. it also has announced it intends to use “dormant” powers from dodd frank that would allow it to conduct supervisory exams on nonbanks or any fintech it believes is risky. The cfpb will examine for discrimination in all consumer finance markets, including credit, servicing, collections, consumer reporting, payments, remittances, and deposits. cfpb examiners will require supervised companies to show their processes for assessing risks and discriminatory outcomes, including documentation of customer demographics and the impact of products and fees on different. The cfpb’s decision to use its udaap authority to challenge discriminatory conduct was presaged by an article published last year by the student borrower protection center titled “discrimination is ‘unfair’.” the article argued that the cfpb, ftc, state attorneys general and regulators, and in some cases private individuals, should consider challenging discrimination as an unfair.

Examining The Cfpb S Targeting Of Discrimination In Consumer Financ The cfpb will examine for discrimination in all consumer finance markets, including credit, servicing, collections, consumer reporting, payments, remittances, and deposits. cfpb examiners will require supervised companies to show their processes for assessing risks and discriminatory outcomes, including documentation of customer demographics and the impact of products and fees on different. The cfpb’s decision to use its udaap authority to challenge discriminatory conduct was presaged by an article published last year by the student borrower protection center titled “discrimination is ‘unfair’.” the article argued that the cfpb, ftc, state attorneys general and regulators, and in some cases private individuals, should consider challenging discrimination as an unfair. In a press release, the cfpb announced that it will begin targeting discrimination as an unfair practice under its unfair, deceptive, and abusive acts or practices (udaap) authority, vastly expanding the reach of its anti discrimination enforcement beyond the limits of the equal credit opportunity act (ecoa). According to professor sovern, this argument is flawed because the ecoa does more than just prohibit discrimination in credit transactions, such as providing injured consumers with a private right of action, and therefore would have been needed even if congress considered discrimination something the cfpb could address through its udaap authority.

Industry Groups To Cfpb Take Back Udaap Anti Discrimination Policy In a press release, the cfpb announced that it will begin targeting discrimination as an unfair practice under its unfair, deceptive, and abusive acts or practices (udaap) authority, vastly expanding the reach of its anti discrimination enforcement beyond the limits of the equal credit opportunity act (ecoa). According to professor sovern, this argument is flawed because the ecoa does more than just prohibit discrimination in credit transactions, such as providing injured consumers with a private right of action, and therefore would have been needed even if congress considered discrimination something the cfpb could address through its udaap authority.