Metro Lex News

Washington, D.C. – Congressman Andy Barr (KY-06) has introduced legislation to amend the Consumer Financial Protection Act of 2010, aiming to provide clarity and reform the unfair, deceptive, acts and practices (UDAAP) authority granted to the Bureau of Consumer Financial Protection (CFPB) by the Dodd-Frank Act.

The legislation, titled the Rectifying Undefined Definitions of Abusive Acts or Practices or the Rectifying UDAAP Act, seeks to address the lack of clarity surrounding the definition of "abusive" and the guidance provided by the CFPB on UDAAP violations. Congressman Barr believes that regulatory uncertainty has led to limited choices and higher prices for consumers, and the CFPB should not be complicit in such outcomes.

According to Congressman Barr, "My legislation requires the CFPB to provide the transparency financial institutions need to serve consumers and ensure there is ample access to credit in our consumer markets."

The proposal has received support from various industry stakeholders. Celia Winslow, Senior Vice President of the American Financial Services Association, praises the legislation for bringing clarity and certainty to the rules governing the consumer credit industry. She states, "Clear and certain rules of the road for our industry ensure that the largest number of consumers can get the credit they need from reputable and ethical lenders."

Jim Nussle, President and CEO of the Credit Union National Association (CUNA), and Dan Berger, President and CEO of the National Association of Federally-Insured Credit Unions (NAFCU), applaud Congressman Barr's efforts to rein in the CFPB's abuse of its UDAAP authority. They believe that the legislation will support the financial well-being of American families and advance communities.

Rebeca Romero Rainey, President and CEO of the Independent Community Bankers of America (ICBA), expresses gratitude for the Rectifying UDAAP Act, as it clarifies the CFPB's regulatory authority and ensures that community banks can meet the needs of their customers and communities.

Lindsey Johnson, President and CEO of the Consumer Bankers Association, emphasizes the importance of better defining the CFPB's UDAAP authority to prevent unintended consequences. Johnson commends Congressman Barr for introducing the legislation, which would provide the clarity needed for compliance with current and future regulatory requirements.

Rob Nichols, President and CEO of the American Bankers Association, highlights the CFPB's attempt to expand its regulatory reach beyond its statutory authority. He believes that the Rectifying UDAAP Act would define the Bureau's boundaries, requiring it to prove intentional misconduct and excluding discriminatory practices already governed by anti-discrimination laws.

In conclusion, Congressman Barr's proposed legislation aims to bring clarity and certainty to the UDAAP authority granted to the CFPB. The support from various industry stakeholders demonstrates the need for clear rules and guidelines that benefit consumers and the financial services market as a whole. By addressing regulatory uncertainty, the Rectifying UDAAP Act seeks to ensure access to credit and protect consumers from unfair and deceptive practices.

To learn more, click on this link: https://barr.house.gov/press-releases?ID=B168D678-0C8F-4766-B711-1C51D5C74372