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On March 16, 2022, the CFPB amended its Supervision and Examination Manual, which directs examiners on how to assess compliance with federal consumer financial laws. The form of the CFPB’s action was tripartite: it issued a press release, published a blog post, and revised the UDAAP section of its Supervision and Examination manual. The amendment took the position for the first time that the Bureau has enforcement authority to prevent discrimination, including disparate impacts, as unfair, deceptive, or abusive acts or practices (UDAAPs) under the Dodd-Frank Act. This amendment affects all providers of consumer financial products, not just providers under supervision because it establishes expectations for compliance programs and will guide enforcement decisions. On June 28, 2022, the American Bankers Association, Consumer Bankers Association, Independent Community Bankers Association, and U.S. Chamber of Commerce issued a white paper explaining why this is both substantively and procedurally unauthorized. The same day, Daryl Joseffer, Chief Counsel of the U.S. Chamber Litigation Center, sent a letter to Director Chopra warning of litigation if the CFPB did not rescind the amendment.
Resources:
U.S. Chamber Litigation Center, U.S. Chamber v. CFPB, U.S. Dist. Ct., E.D. Tex.