As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress empowered the Consumer Financial Protection Bureau (CFPB) to prohibit consumer financial services companies from, among other things, engaging in deceptive acts or practices related to their consumer financial products and services. The CFPB takes this particular authority very seriously, as a number of major credit card companies learned last summer when they settled with the bureau and other regulators for a collective $500 million at the end of a long investigation involving alleged consumer deceptions by credit card call centers.
Regulatory: The CFPB’s UDAAP deceptive standard does not require knowledge or intent
Martin J. Bishop is a partner, litigation department vice chairman and co-chair of the consumer financial services litigation practice at Foley & Lardner LLP. He...Bio and more articles