In 2010, the Dodd-Frank Act for the first time made it unlawful for persons to engage in an “abusive act or practice.” The “abusive” standard was added to the existing “UDAP” standard—unfair, deceptive acts and practices, creating a new “UDAAP”—unfair, deceptive, or abusive acts and practices.

Now, nearly a decade after the Dodd-Frank Act became law, uncertainty still remains as to the scope and meaning of “abusiveness.” In the Consumer Financial Protection Bureau’s examination manual, the Bureau says that an abusive act or practice is one that...

Originally published in Tennessee Dealer News, Winter 2020.