The National Association of Federally-Insured Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement after the CFPB rescinded its policy statement related to the "abusive" prong of the unfair, deceptive, or abusive acts or practices (UDAAP) provision.
"The actions by the CFPB today will create regulatory uncertainty on what is considered to be abusive acts or practices," said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt.
While the Dodd-Frank Act provides broad definitions of prohibited behaviors under UDAAP, these are not clear rules of the road. Credit unions strongly support consumer protections and consistently work to meet the needs of their members. NAFCU will continue to work with the bureau and reiterate its longstanding call for specific examples and defined guidance on prohibited practices so that the CFPB can prevent abusive behaviors, as opposed to just going after the bad actors in the marketplace."