CFPB Guidance on UDAAP Enforcement in Light of Regulation AA Repeal
Concurrent to a proposal from the Federal Reserve Board to repeal Regulation AA (12 CFR part 227), the Consumer Financial Protection Bureau (CFPB) and several federal agencies have issued inter-agency guidance concerning unfair or deceptive credit practices by banking and financial entities. Never the less, the agencies claim to retain supervisory and enforcement authority regarding Unfair, Deceptive, and Abusive Acts or Practices (UDAAP). Consequently, agencies may determine that statutory violations have occurred even in the absence of a specific regulation governing such conduct.
In this two-hour LIVE webcast, a panel of distinguished professionals and thought leaders assembled by The Knowledge Group will help compliance and risk mitigation professionals and others understand the important aspects of the CFPB Guidance on UDAAP Enforcement in Light of Regulation AA Repeal. They will provide an in-depth discussion of UDAAP principles and the impact of this enhanced regulatory focus on financial products and services and related entities. Speakers will also offer best practices in developing and implementing an effective policy to identify compliance issues and potential violations of UDAAP.
Key topics include:
- UDAAP Framework and Regulation AA (12 CFR part 227)
- Prohibited Practices Deemed as Unfair, Deceptive and Abusive
- Emphasis on Self-Reporting
- CFPB Guidance and Priorities
- Regulatory Compliance and Risk Mitigation
Morrison & Foerster
- Changing of the Guard – Repeal of Reg AA
- UDAAP Framework
- Unfair & Deceptive
- Abusive – this is what’s new
- The New Abusive Prong
- What is it?
- What does it mean?
- What practices might be abusive?
- CFPB hot buttons for abusive
- CFPB’s UDAAP authority
- Will we see expanded enforcement by state actors?
- Adapting to the New UDAAP Paradigm
- This is not business as usual
- CFPB’s guidance – emphasis on self-reporting
- How can covered entities mitigate UDAAP risks?
- Commitment to compliance
- Response to regulatory inquiries
- Treating exams as precursor to enforcement
- Tracking hot button issues in enforcement and rulemaking
- Areas of particular focus
- Customer service
- Vendor management
Goodwin Procter LLP
- CFPB using UDAAP to expand its jurisdiction
- Key areas of UDAAP supervisory and enforcement activity
- Student lending
- Auto loans
- Credit cards – marketing and add-on products
- Data privacy
- Debt Collection
- State Enforcement of UDAAP
- State AGs and enforcement entities can sue covered persons under UDAAP
- CFPB and states are increasingly sharing information and cooperating in enforcement actions, making it more likely for states to bring enforcement actions
- Repeal of rulemaking authority by federal agencies opens the door for state AGs and agencies to use their power to enforce the UDAAP provision
- Recent State actions:
- UDAAP gives CFPB real teeth – it is broad in the ways that CFPB can go after consumer financial companies, and carries significant weight in terms of damages and penalty provisions
- CFPB is using UDAAP to go after entities that may be otherwise immune to enforcement action (such as banks under the FDCPA)
- Dodd-Frank crowned the CFPB as the leader of consumer financial enforcement, but other agencies are not completely going away, particularly the FTC
- Be aware of state regulators and enforcement agencies
Who Should Attend:
- Compliance and Risk Professionals
- Finance Professionals
- Related Finance Executives
- Fraud Monitoring
- Fraud Analysts
- Fraud Executives at Banks, Financial Institutions and Related Companies
- Federal Banking Agencies
- Regulatory and Policy Managers
- Other Related/Interested Professionals
Nancy Thomas is a member and former co-chair of the firm’s Financial Services Litigation Practice Group. Her practice focuses on representing financial institutions in all types of class action and high-stakes litigation in arbitrations, trial courts and appeals. Ms. Thomas also represent banks and non-banks in regulatory investigations and enforcement actions, including proceedings before the CFPB, the FDIC, and the DOJ. She regularly counsels clients on compliance and regulatory matters, including remediation scoping and execution, UDAAP analysis, and vendor management.
Ms. Thomas is recognized by Legal 500 US as a top financial services litigator, and by Benchmark Litigation as a leading California litigator. She also earned a place on the Benchmark Litigation and Euromoney Media Group lists of the Top 250 Women in Litigation. Ms. Thomas is an editor and contributing author of the firm’s award-winning quarterly financial services newsletter.
Nancy Thomas is a member and former co-chair of the firm’s Financial Services Litigation Practice Group. Her practice focuses on …
Ben Saul is a partner in Goodwin Procter’s Consumer Financial Services Litigation Group and a leader in the areas of consumer financial services enforcement and fair and responsible banking. Mr. Saul has a nationwide practice representing financial services and individual clients in high-stakes administrative enforcement and criminal matters, private civil and class action litigation, and parallel proceedings involving private litigants and federal and state enforcement authorities. He also conducts corporate internal investigations and advises clients on compliance issues and programs.
Mr. Saul has extensive experience representing clients in matters involving the Consumer Financial Protection Bureau (CFPB). He has also represented clients in matters involving the Congress, DOJ, HUD, FTC, SEC, federal and state banking authorities, and state attorneys general. Mr. Saul's matters have concerned a broad range of consumer finance issues, including marketing, lending, servicing and securitization practices as well as fair and responsible banking, credit reporting, and consumer privacy and data security.
Ben Saul is a partner in Goodwin Procter’s Consumer Financial Services Litigation Group and a leader in the areas of …
Print and review course materials
Method of Presentation:
On-demand Webcast (CLE)
NASBA Field of Study:
NY Category of CLE Credit:
Areas of Professional Practice
2.0 CPE (Not eligible for QAS (On-demand) CPE credits)
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About Morrison & Foerster
Morrison & Foerster was founded in San Francisco in 1883. Today, with more than 1,000 lawyers in 17 offices across the U.S., Asia, and Europe, Morrison & Foerster offers clients a comprehensive platform of global legal services. The Firm is recognized for its depth and expertise in financial services litigation. We represent financial services clients throughout the United States in federal and state court matters, and have experienced financial services litigators resident throughout the United States, Europe and Asia. Our financial services clients include national banks, federal and state savings associations, commercial banks, independent and industrially-owned finance companies and limited purpose banks, mortgage bankers and brokers, insurance companies, and securities firms.
About Goodwin Procter LLP
Founded in 1912, Goodwin Procter LLP is a leading Global 100 law firm, with offices in Boston, Hong Kong, London, Los Angeles, New York, San Francisco, Silicon Valley and Washington, D.C. We have one of the preeminent consumer financial services litigation and enforcement practice groups in the nation, as recognized by Chambers, US News and The Legal 500. Our team of industry specialists counsel and defend clients across a broad spectrum of consumer financial services matters, including regulatory counseling and examinations, government investigations, enforcement proceedings and litigation. We regularly handle high-stakes matters for many of the nation’s largest financial services companies, including prominent banks, mortgage companies, credit card issuers, student lenders, auto finance companies and insurers. For more information, visit www.goodwinprocter.com. Follow us on Twitter @GoodwinProcter.