The customer Financial Protection Bureau’s overhaul of their payday lending guideline rolls right straight back a vital policy for the previous Obama-appointed leadership. Many observers state the move goes beyond any solitary legislation.
In proposing to relax the guideline, the CFPB seems to count on a legal doctrine regarding “unfair, misleading or abusive acts or practices.” A UDAAP is forbidden underneath the Dodd-Frank Act, nevertheless the CFPB can determine what forms of conduct meet that designation.
Some experts say the CFPB is also clarifying what constitutes a UDAAP by softening its view toward payday lenders. This kind of move, long desired by the services that are financial, may have wide-ranging effects as to how the bureau enforces guidelines at businesses apart from payday loan providers. (altro…)