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Brad Karp, Roberto Gonzalez and Hilary Oran Co-Author Law360 Article on CFPB Policy Shift Regarding Abusive Acts
March 25, 2021
Firm Chairman Brad Karp, litigation partner Roberto Gonzalez and litigation associate Hilary Oran co-authored an article, “What CFPB Policy Shift Means For Scrutiny Of Abusive Acts,” that appeared in the Expert Analysis section of Law360. The article discusses the CFPB’s shift under the Biden Administration to a more aggressive use of its rulemaking, supervision, and enforcement authorities. As part of this shift, the CFPB recently repealed a policy statement in which the agency had announced a policy of restraint towards enforcing the “abusive” prohibition.
The article discusses the reasons for the repeal and the contexts in which the CFPB might be expected to flex its abusiveness authority. The authors predict that CFPB examiners and enforcement attorneys will cite abusive violations with more frequency, as well as work to develop and expand the abusiveness standard. In light of this, the authors recommend that regulated entities consider refreshing their reviews of products, practices and disclosures to identify and mitigate their exposure to unfair, deceptive or abusive acts and practices (UDAAP) risk.