Banks Accuse CFPB for Abuse of Power
On September 28th, 2022, several banking trade groups have sued the CFPB, claiming it has exceeded its authority with anti-discrimination enforcement. The litigation challenges the CFPB’s recent update to the Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) section of the CFPB’s exam manual because it exceeds its statutory authority and violates the Administrative Procedure Act (APA) in three ways:
The Bureau is exceeding its statutory authority outlined in the Dodd-Frank Act;
The updated manual is “arbitrary” and “capricious”, and;