Lawsuit against CFPB challenges UDAAP policy, funding structure
Wednesday, a complaint led by the U.S. Chamber of Commerce was filed against the CFPB and Director Rohit Chopra challenging the bureau’s March 2022 update to the Unfair, Deceptive, or Abusive Acts and Practices (UDAAP) section of its examination manual. The complaint alleges that the CFPB’s attempt to regulate discriminatory conduct under UDAAP violates the Administrative Procedures Act (APA), exceeds the CFPB’s statutory authority, and is arbitrary.
The complaint further alleges that the CFPB has misinterpreted its UDAAP authority to include discrimination, causing significant compliance costs because examiners will require their supervised companies to show their processes for examining risks and discriminatory outcomes.
Of note, the CFPB’s updated manual stated that “discrimination may meet the criteria for ‘unfairness’ by causing substantial harm to consumers that they cannot reasonably avoid, where that harm is not outweighed by countervailing benefits to consumers or competition.”
The plaintiffs, which include several trade associations, also allege that the manual is a legislative rule that should be subject to the APA’s notice and comment requirement, which the CFPB did not follow. In addition, the plaintiffs allege that the manual was issued with funds that were not properly appropriated in accordance with the constitutional appropriations clause.
Following the release of the bureau’s updated examination manual, NAFCU released an updated version of its UDAAP issue brief. In addition, the association has a new issue brief that highlights the significant impacts the CFPB’s regulations have on the credit union industry, noting that many – including UDAAP – are ripe for reform.
The association will continue to work closely with the CFPB and other stakeholders to share credit union feedback and provide insights into the regulatory and legislative landscape. In addition, NAFCU continues to advocate for clear guidance under UDAAP, particularly under the definition of “abusive" acts or practices.
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Board and Governance
Add to Calendar 2023-06-06 14:00:00 2023-06-06 14:00:00 Avoiding and Resolving Harassment Claims: A Primer for Board Members The #me-too movement may have receded from the front of public consciousness, but the need to prevent and resolve harassment claims remains a key function for any employer. As community-oriented organizations, credit unions more than most feel a responsibility for the well-being of their members, employees and volunteers. This webinar, Avoiding and Resolving Harassment Claims: A Primer for Board Members provides both an introduction to the subject for board members, as well as selected deep dives on particular issues of interest to credit union volunteer boards. Key Takeaways Learn to identify the hallmarks of a situation in which it is appropriate for the board to become involved, as opposed to permitting effective resolution through normal human resources procedures Recognize the breadth of current law governing harassment claims, including newly prominent protected categories, the nature and severity of conduct which may constitute harassment, and the fact that conduct that may not rise to the level of a state or federal law civil rights violation may still violate the credit union’s own internal policies, procedures, and ideals, and be subject to appropriate discipline and remedial action Discover appropriate oversight roles for board officers, committee members including supervisory committee members, and other Board members, particularly in the context of passing along a report or complaint of harassment or inappropriate conduct Register Now$295 Members | $395 Nonmembers (Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until June 6, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Board of director titles NCVEs and volunteer titles HR titles Education Credits NCVEs will receive 1.0 CEUs for participating in this webinar Web NAFCU firstname.lastname@example.org America/New_York public
Avoiding and Resolving Harassment Claims: A Primer for Board Members
Add to Calendar 2023-06-06 09:00:00 2023-06-06 09:00:00 Fighting Fraud: The Role of Fraud Fusion Centers Listen On: Key Takeaways: [00:56] The concept of a Fraud Fusion Center is a collaboration among professional fraud fighters. Anyone that has been doing this for a while forms a network of trusted advisors and we all go to each other anytime we come across some new or complex case. [02:50] Scams have always been around but the emergence of AI has made them far more sophisticated than we have ever seen before. [05:55] Person-to-person payment apps like Zelle, Venmo, and CashApp are not protected like debit and credit cards. [08:30] Every single time that new technology comes out that makes our lives better, fraudsters will find a way to exploit it. The current state of cyber fraud points credit unions in a lose-lose situation. [20:04] By identifying the information at one credit union and getting it out to others they are getting ahead of these threats. [22:19] Fraud Fusion Centers are critical. Formalize it and make it happen. Web NAFCU email@example.com America/New_York public
Fighting Fraud: The Role of Fraud Fusion Centers
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Board and Governance
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