CFPB expands UDAAP reach to include discrimination

On March 16, 2022, the CFPB published a revised examination procedure guide (Guide) for unfair, deceptive, or abusive acts or practices (UDAAP). In its press release, the CFPB states that the agency is now targeting discrimination as an unfair practice in connection with all financial products and services and not just credit products. This is a serious change in the CFPB’s stance on UDAAP and discrimination. As such, credit unions may want to review the Guide and their own practices to understand how this change may affect their business.

What is an unfair practice?

According to the Guide, an act or practice is unfair when:

  1. “It causes or is likely to cause substantial injury to consumers;
  2. The injury is not reasonably avoidable by consumers; and


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