Examining the CFPB’s Targeting of Discrimination in Consumer Finance Through UDAAP
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. 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. Many critics argue that many of these acts should be conducted through notice and comment rule-making processes and point to similar efforts during the Obama Administration when similar extensive use of guidance was treated as equivalent to a rulemaking for purposes of the Congressional Review Act. A major lawsuit has also challenged this assertion of authority by the CFPB.
In this webinar recording, experts discuss the specifics of the CFPB’s assertion of expansive authority in these areas, the use of supervision more generally in relation to rulemaking, and the lawsuit that has challenged these acts.
Managing Director, Banking Supervision and Regulation Group
Patomak Global Partners
Manatt, Phelps & Phillips, LLP
George Mason University Foundation Professor of Law
Antonin Scalia Law School, George Mason University
The Federalist Society and Regulatory Transparency Project take no position on particular legal or public policy matters. All expressions of opinion are those of the speaker(s). To join the debate, please email us at [email protected].