Bill > HR1652

This bill, known as the Rectifying UDAAP Act, aims to modify the Consumer Financial Protection Act of 2010 by clarifying and limiting the Consumer Financial Protection Bureau's (CFPB) enforcement powers regarding unfair, deceptive, and abusive acts and practices (UDAAP). The bill requires the CFPB to conduct a cost-benefit analysis when issuing rules about UDAAP, define what constitutes an "abusive act or practice" within 180 days, and explicitly prohibit the bureau from interpreting its UDAAP authority to include discriminatory practices. The bill establishes a more stringent standard for declaring an act "abusive," requiring that it either intentionally interfere with a consumer's understanding of a financial product or take unreasonable advantage of a consumer's lack of understanding. It also introduces a "good-faith effort" provision that prevents the CFPB from seeking monetary relief if a covered person can demonstrate they tried to comply with regulations. Additionally, the bill creates a "notice and opportunity to cure" process, giving financial institutions 180 days to address potential violations before facing legal action, limits the CFPB's ability to seek penalties for conduct that occurred before the most recent consumer compliance rating, and restricts the bureau's enforcement actions to specific federal district courts while requiring precise allegations in enforcement actions.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/1652/all-info