On November 6, the Consumer Financial Protection Bureau (CFPB) lodged an appeal against a district court order which granted summary judgment to several trade associations who challenged alterations implemented in its Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) Exam Manual in March 2022. The notice was directly filed with the federal district court in Texas. The appeal to the Fifth Circuit has been reported by JD Supra.
The CFPB’s changes were part of its attempt to use authority, provided by the Dodd-Frank Act, with a sought intention to prohibit UDAAPs to target discriminatory conduct. The trade associations, however, saw these changes as erroneous and eletronymously overreaching.
The battle surrounding the CFPB’s UDAAP modifications has been closely watched by legal practitioners nationwide. Its outcome could potentially impact how organizations interpret and comply with UDAAP regulations.
The appeal filed by the CFPB marks a new chapter in this legal dispute, demonstrating the agency’s persistence to assert its new approach to UDAAP regulation under the Dodd-Frank Act.