Editor's Note
The following document provides a monthly roundup summarizing enforcement actions, guidance, rulemakings, and other public statements from the Consumer Financial Protection Bureau and the Federal Trade Commission regarding the prohibition on unfair, deceptive, or abusive acts or practices (UDAAP) in the marketplace for consumer financial services.

Enforcement and Litigation

  • Consumer Financial Protection Bureau & Department of Justice. Consumer Lenders & Equal Credit Opportunity Act (ECOA). CFPB and DOJ filed a suit against a company for allegedly operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans in violation of 12 U.S.C. §§ 5536 (CFPB Act), 15 U.S.C. §§ 1691-1691f (Equal Credit Opportunity Act and Reg B) and 42 U.S.C. §§ 3601-3619 (Interstate Land Sales Full Disclosure Act). The complaint alleges they engaged in several violations of law, including a pattern or practice of unlawful discrimination against applicants based on race or national origin, misleading borrowers about infrastructure on the lots it sells, selling lots that flood with rain and raw sewage, and exploiting language barriers by conducting most of its marketing activities in Spanish while offering important transaction documents only in English. (Alleged UDAAP violations: deceptive, unfair).

Rulemakings and Guidance

  • Federal Trade Commission. "Junk Fees." FTC extended through February 7, 2024, the deadline for comments on its proposed rule prohibiting junk fees, pursuant to the agency's authority with respect to unfair or deceptive fees. (Alleged UDAAP violations: deceptive, unfair).

Public Statements, Reports, and Other Items of Note

  • Consumer Financial Protection Bureau & Department of Justice. Consumer Lenders. CFPB Director Chopra and DOJ Assistant AG gave remarks about a recent enforcement action against a firm targeting Hispanic borrowers in an alleged illegal land sales scheme. (Alleged UDAAP violations: deceptive, unfair).

Michael Buckalew is a regulatory analyst with Davis Wright Tremaine LLP.