The CFPB has issued new enforcement actions that include allegations of unfair, deceptive, or abusive acts and practices (UDAAP) in connection with consumer financial products. We’ve updated our UDAAP Database with the most recent actions to facilitate understanding of the themes and patterns in UDAAP enforcement actions that have been issued.

In one development of particular significance, a judge refused to “rubber stamp” the CFPB’s proposed settlement of a lawsuit filed against a major wireless telecommunications provider for alleged UDAAP violations. Instead, the judge ordered the parties to file briefs “explaining why the settlement is fair, reasonable, and does not disserve the public interest.” In the order, the judge reasoned as follows:

 How the Bureau believes a judge can evaluate the proposed settlement with a one sentence joint motion, no memorandum of law, and no declarations, eludes this Court. It is especially ironic, given the Bureau's core mission as described on its website to "give consumers the information they need to understand the terms of their agreements...."

This is a welcome development because there has been limited judicial oversight of the CFPB’s UDAAP enforcement authority since the agency was formed in 2011.

The PLA team will continue to monitor developments and provide similar updates as additional enforcement actions are issued.