CFPB Enforcement Data Reveals Increased UDAAP Focus, Willingness to Litigate

In conjunction with a forthcoming survey on the CFPB’s UDAAP enforcement actions and our UDAAP enforcement action database, we generated data to analyze all of the CFPB’s enforcement activity since the agency came into existence. The year-to-year data, which appears in the charts and table below, provides several interesting trends between 2013 and 2014. Here are our key takeaways:

The CFPB’s use of its enforcement authority is on the rise. The volume of CFPB enforcement actions increased by 29%, from 24 actions in 2013 to 31 actions in 2014.

The CFPB is using litigation more frequently. The volume of cases litigated in civil court as opposed to being settled out of court increased by 150%, from 4 cases in 2013 to 10 cases in 2014.

UDAAP actions were an increased enforcement priority. The percentage of UDAAP actions as part of all enforcement activity increased by 23%, from 54% in 2013 to 77% in 2014. The percentage of non-UDAAP cases accordingly decreased by 23%, from 46% in 2013 to 23% in 2014.

More UDAAP actions are being litigated in civil courts as opposed to being settled out of court. The volume of UDAAP cases being litigated increased by 233%, from 3 cases in 2013 to 10 cases in 2014.

But UDAAP settlements are still prevalent. The volume of UDAAP settlements increased by 40%, from 10 cases in 2013 to 14 cases in 2014.