NAFCU: UDAAP symposium shows need to clarify 'abusive'
In a post on NAFCU's member-only Compliance Network, NAFCU Director of Regulatory Affairs Ann Kossachev provides a detailed recap of the CFPB's symposium on the "abusive" prong of the unfair, deceptive or abusive acts or practices (UDAAP) provision. Kossachev said yesterday's discussions make clear the need more clarity on the issue, for which NAFCU has long advocated.
Tuesday's symposium – the first in a series – consisted of two panels that discussed the statutory construction and practical application of the provision. During the discussion, experts recommended the CFPB, as it looks to craft "abusive" guidance, consider the Federal Trade Commission's (FTC) approach to defining "unfair" and "deceptive" under its standard.
However, Kossachev notes in her recap that panelists were split as to whether more guidance is actually needed on the "abusive" prong. The fact that the conversation is even being had, Kossachev argues, demonstrates the need for more clarity.
"Unlike the 'unfair' and 'deceptive' standards, credit unions and other stakeholders cannot benefit from decades of precedent on what is and is not an abusive act or practice," Kossachev writes.
Read Kossachev's full, detailed recap of the symposium in the Compliance Network here. The CFPB has also made available Director Kathy Kraninger's and Deputy Director Brian Johnson's remarks from the event.
NAFCU Regulatory Affairs Counsel Kaley Schafer also attended Tuesday's symposium. Dates for future symposia have yet to be announced; see the topics here.
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