To amend the Consumer Financial Protection Act of 2010 to clarify standards for UDAAP enforcement actions brought by the Bureau of Consumer Financial Protection, and for other purposes.
Summary
What This Bill Does
The bill requires the CFPB to issue a rule within 180 days establishing policies and procedures for imposing civil monetary penalties, including application of mitigating factors, requires the CFPB to conduct cost-benefit analysis for all UDAAP rules and to formally define abusive act or practice through rulemaking within 180 days, and exempts narrows the definition of abusive practices, requiring intentional and material interference or taking unreasonable advantage of consumer lack of understanding AND reasonable reliance. It relies on liability protections, exemptions, reporting requirements, and compliance mandates. The main policy areas are Finance, Consumer Protection, and Technology.
Who Benefits and How
Regulated financial institutions could face reduced risk, Consumer lenders could face lower compliance burdens, and Banks with compliance ratings could face reduced risk.
Who Bears the Burden and How
Consumer Financial Protection Bureau would take on compliance duties and Consumers could face increased risk.
Key Provisions
- Requires the CFPB to issue a rule within 180 days establishing policies and procedures for imposing civil monetary penalties, including application of mitigating factors.
- Requires the CFPB to conduct cost-benefit analysis for all UDAAP rules and to formally define abusive act or practice through rulemaking within 180 days.
- Exempts narrows the definition of abusive practices, requiring intentional and material interference or taking unreasonable advantage of consumer lack of understanding AND reasonable reliance.
- Prohibits the CFPB from seeking civil money penalties for conduct that occurred before the most recent consumer compliance rating, while preserving authority for other legal or equitable remedies.
- Creates new Section 1029B limiting CFPB civil penalty authority to conduct after the most recent compliance rating, while preserving other legal and equitable remedies.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill requires the CFPB to issue a rule within 180 days establishing policies and procedures for imposing civil monetary penalties, including application of mitigating factors, requires the CFPB to conduct cost-benefit analysis for all UDAAP rules and to formally define abusive act or practice through rulemaking within 180 days, and exempts narrows the definition of abusive practices, requiring intentional and material interference or taking unreasonable advantage of consumer lack of understanding AND reasonable reliance.
Key Policy Areas
Finance, Consumer Protection, Technology
Primary Purpose
The bill requires the CFPB to issue a rule within 180 days establishing policies and procedures for imposing civil monetary penalties, including application of mitigating factors, requires the CFPB to conduct cost-benefit analysis for all UDAAP rules and to formally define abusive act or practice through rulemaking within 180 days, and exempts narrows the definition of abusive practices, requiring intentional and material interference or taking unreasonable advantage of consumer lack of understanding AND reasonable reliance.
Policy Domains
Consumer Financial Protection Act Amendments
Identified Gains
- Regulated financial institutions
- Consumer lenders
- Banks with compliance ratings
- Banks and credit unions
- Mortgage servicers
Identified Costs
- Consumer Financial Protection Bureau
- Consumers
Sponsors
Legislative Progress
IntroducedMr. Barr introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Banks and credit unions, Banks and financial institutions, Banks with compliance ratings
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_bureau"
- → Bureau of Consumer Financial Protection CFPB
- "covered_person"
- → Financial services companies subject to CFPB oversight
Key Definitions
Terms defined in this bill
To be defined by CFPB rulemaking within 180 days; currently requires intentional material interference with consumer understanding OR taking unreasonable advantage of consumer lack of understanding combined with reasonable reliance on covered person representations
A defense established by preponderance of evidence that shields covered persons from monetary relief under UDAAP enforcement
Conduct causing substantial injury not reasonably avoidable disclosure creates presumption of avoidability and not outweighed by benefits to consumers or competition
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology