John C. Redding quoted in an Auto Finance News article, “Attorneys seek CFPB definition of abusive practices”
Auto Finance NewsJohn C. Redding
John C. Redding was quoted on November 5, 2018 in an Auto Finance News article, “Attorneys seek CFPB definition of abusive practices,” which discussed the announcement from the CFPB to define the term “abusive” in the Dodd-Frank Act. The article stated, “The Consumer Financial Protection Bureau has set the ball rolling to define the term “abusive” in the Dodd-Frank Act, which prohibits lenders from committing unfair, deceptive, or abusive acts or practices. Acting Director Mick Mulvaney announced the move in the CFPB’s rulemaking agenda released last month, but did not specify a timeline for the definition.”
Redding noted, “Unfair and deceptive have been well defined over the years. A lender can’t know if something is considered abusive because they don’t have something to measure against.” He added, “It’s tough to build a compliance system around a concept that lenders don’t know what the guardrails are. We may not want more regulation, but to get an understanding of what abusive means can only be helpful.”
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