Toomey Statement on Lawsuit Challenging the Legality of CFPB’s UDAAP Changes
Washington, D.C. – U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) released the following statement after financial groups filed a lawsuit challenging the legality of the Consumer Financial Protection Bureau’s (CFPB) recent changes to the Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) exam manual.
“The CFPB should certainly enforce the laws Congress charged them with—including laws protecting against discrimination in consumer finance—but this sneaky change goes far beyond what Congress ever authorized. The CFPB has now wrongly granted itself power to use the controversial disparate impact theory to punish any financial services provider for discrimination even without evidence of discriminatory intent.
“Coupled
with the fact that the CFPB put this contentious policy in place with an edit
to its exam manual instead of through a transparent rulemaking process, it’s
clear Director Chopra will keep using legally dubious tactics to pursue a
highly-politicized agenda. I’m glad to see the Chamber and other groups taking
a stand against Director Chopra’s latest power grab.”
Ranking
Member Toomey first
raised concerns about the CFPB’s changes to the UDAAP exam manual
during an April 2022 hearing. During the hearing, Senator Toomey pressed Director Chopra
on the legality of CFPB’s changes, which effectively reverse Congress’
legislative decisions.
###
Next Article Previous Article
