Rectifying UDAAP Act

Requirement for Cost-Benefit Analysis: Any final rule issued by the Bureau regarding these practices must include a cost-benefit analysis (Section 3(a)(2)).

Standardized Definitions: The Bureau will be required to issue a rule that defines the term "abusive act or practice" within 180 days (Section 3(a)(3)).

Public Input Opportunity: The Bureau must allow the public to submit comments regarding confusion over how its authority is used (Section 3(b)).

Defined Abusive Standards: The Bureau's authority to declare an act abusive is now restricted to acts that intentionally interfere with consumer understanding or take unreasonable advantage of a consumer's lack of understanding (Section 5(a)(1)).

Protection Against Unnecessary Penalties: The Bureau cannot seek monetary relief unless a covered person fails to establish they made a good-faith effort to comply (Section 5(d)(1)).

Opportunity to Fix Issues: If a company self-identifies a potential issue, they are provided a 180-day period to cure the act or practice (Section 6(g)(1)).

Restrictions on Authority: The Bureau is prohibited from interpreting its authority regarding unfair, deceptive, or abusive acts to include discriminatory practices (Section 4).

Limitation on Abuse Claims: An act is not considered abusive if it was timely, clearly and conspicuously disclosed to consumers (Section 5(a)(2)(A)).

Limits on Penalty Discovery: The Bureau may not seek civil money penalties for violating conduct that occurred prior to the most recent assignment of a consumer compliance rating (Section 8(a)).

Restrictions on Legal Claims: When bringing enforcement actions, the Bureau cannot claim an activity is both unfair/deceptive and abusive in the alternative (Section 7(b)(2)).