Saturday, June 15, 2024

Judge rules against CFPB in UDAAP exam manual lawsuit

A U.S. district judge ruled today the Consumer Financial Protection Bureau’s update to its Supervision and Examination Manual is unlawful.

Judge J. Campbell Barker, of the Eastern District of Texas, agreed with plaintiffs and issued a summary judgment stating the CFPB’s March 2022 update to the manual exceeds the Bureau’s statutory authority and is based on unconstitutional funding.

The lawsuit was brought by the American Bankers Association, the Texas Bankers Association, the U.S. Chamber of Commerce and several others, in which they challenged the CFPB’s UDAAP exam manual, where the bureau expanded the statutory definition of “unfairness” to encompass discrimination.