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In an article published in American Banker on November 11, Amy Hana Keeney is quoted regarding the practical implications of Acting CFPB Director Mick Mulvaney’s intention to more clearly define the definition of “abusive” acts or practices instead of relying on – what this administration sees as unfair – past enforcement being used to build precedent.

Amy believes this is a way for Mulvaney to follow through on his assertion that the agency has been allowed too broad a mandate. “This is Mulvaney putting his money where his mouth is in not regulating by enforcement,” she said.

The administration asserts that more precisely defining the term abusive will prevent what they see as the misuse of the term in enforcement.

However, most unfair, deceptive or abusive acts or practices (UDAAP) are not filed using the abusive standard but using the other two UDAAP standards – unfair and deceptive. With this context, a narrow definition of abusive “is not going to make much of a difference in a practical way,” according to Amy.

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