The Consumer Financial Protection Bureau said it is rescinding its January 2020 “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.”
Background: The 2020 statement covers how the CFPB applies the “abusiveness” standard in supervision and enforcement matters under the Dodd-Frank Act. It said the CFPB will apply principles of consumer harms that outweigh benefits, standalone abusiveness violations, and monetary relief when there has been a lack of effort to comply with the law.
What's New: In Thursday's announcement, the CFPB said the policy statement was inconsistent with its enforcement duty, citing a provision stating that it would decline to seek civil money penalties and disgorgement for certain abusive acts or practices.
