Unfair, Deceptive, or Abusive Acts or Practices

The Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), state attorneys general, and prudential bank regulators continue to be aggressive in their approaches to monitoring unfair, deceptive, or abusive acts or practices (UDAAP), as defined by federal and state consumer protection laws.

Buckley has extensive experience defending against unfair, deceptive, and abusive claims on behalf of the financial services industry. Our experience includes the defense of CFPB and prudential bank regulator enforcement actions and lawsuits, FTC investigations and lawsuits, state attorneys general matters, and class action litigation. We represent clients on a wide range of matters, including fair and responsible lending and servicing, sales and marketing practices, overdraft protection, deposit reconciliation, payment processing, credit reporting, debt collection, and privacy and data security issues. We advise clients on all consumer financial products and services, including mortgage origination and servicing, short-term consumer loans, automobile and other installment loans, credit, debit and stored value cards, and retail banking products. In addition, we are well-versed in the full array of ancillary products, and have particular strength in payday lending and tax refund advances.

Buckley also assists clients on UDAAP compliance matters outside the enforcement context. The firm helps financial services companies develop UDAAP compliance programs and policies, conducts risk assessments, evaluates marketing and product development materials, reviews disclosures, performs mock CFPB examinations, prepares legal analyses of potential UDAAP violations, and provides UDAAP training to boards of directors, senior management, and other key personnel.

Representative work in this area includes:

• Represented Flagstar Bank in the first CFPB enforcement action regarding the CFPB’s mortgage servicing rules that resulted in an administrative consent order settlement for $37.5 million relating to default servicing loss mitigation practices
   
• Represented Verizon Wireless in a multistate, multi-agency investigation and settlement alleging that Verizon Wireless permitted “cramming” by allowing third parties to place unauthorized charges on consumers’ wireless phone bills
   
• Represented a credit card issuer in the second CFPB enforcement action, issued jointly with the FDIC, in which the agencies alleged deceptive marketing and sales practices related to its “add-on” products
   
• Represented First National Bank of Omaha in a CFPB enforcement action alleging UDAAP violations relating to credit card add-on products
   
• Represented Customers Bank in an enforcement action before the Federal Reserve Board (FRB) concerning UDAAP allegations related to financial aid disbursement services for students, which were offered in conjunction with a third party
   
• Represented a credit reporting bureau in a CFPB enforcement action alleging UDAAP violations relating to the marketing of credit scores to consumers
   
• Represented a regional bank in the first CFPB enforcement action that cited both UDAAP and Regulation DD violations in connection with the bank’s marketing of a free checking product
   
• Represented the first national bank to be sued by the CFPB in connection with the bank’s policies and practices for opting in customers to overdraft protection