12 U.S.C. § 5531

Prohibiting unfair, deceptive, or abusive acts or practices

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(a) In general

The Bureau may take any action authorized under part E to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.

(b) Rulemaking

The Bureau may prescribe rules applicable to a covered person or service provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. Rules under this section may include requirements for the purpose of preventing such acts or practices.

(c) Unfairness(1) In generalThe Bureau shall have no authority under this section to declare an act or practice in connection with a transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service, to be unlawful on the grounds that such act or practice is unfair, unless the Bureau has a reasonable basis to conclude that—(A) the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers; and(B) such substantial injury is not outweighed by countervailing benefits to consumers or to competition.(2) Consideration of public policies

In determining whether an act or practice is unfair, the Bureau may consider established public policies as evidence to be considered with all other evidence. Such public policy considerations may not serve as a primary basis for such determination.

(d) AbusiveThe Bureau shall have no authority under this section to declare an act or practice abusive in connection with the provision of a consumer financial product or service, unless the act or practice—(1) materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or(2) takes unreasonable advantage of—(A) a lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service;(B) the inability of the consumer to protect the interests of the consumer in selecting or using a consumer financial product or service; or(C) the reasonable reliance by the consumer on a covered person to act in the interests of the consumer.(e) Consultation

In prescribing rules under this section, the Bureau shall consult with the Federal banking agencies, or other Federal agencies, as appropriate, concerning the consistency of the proposed rule with prudential, market, or systemic objectives administered by such agencies.

(f) Consideration of seasonal income

The rules of the Bureau under this section shall provide, with respect to an extension of credit secured by residential real estate or a dwelling, if documented income of the borrower, including income from a small business, is a repayment source for an extension of credit secured by residential real estate or a dwelling, the creditor may consider the seasonality and irregularity of such income in the underwriting of and scheduling of payments for such credit.

(Pub. L. 111–203, title X, § 1031, July 21, 2010, 124 Stat. 2005.)Statutory Notes and Related SubsidiariesEffective Date

Pub. L. 111–203, title X, § 1037, July 21, 2010, 124 Stat. 2011, provided that: “This subtitle [subtitle C (§§ 1031–1037), enacting this part] shall take effect on the designated transfer date.”

[The term “designated transfer date” is defined in section 5481(9) of this title as the date established under section 5582 of this title.]

Notes of Decisions

Cited in 106 cases (63 in the last 5 years), 2013–2026 · leading case: Consum. Fin. Prot. Bureau v. RD Legal Funding, LLC, 332 F. Supp. 3d 729 (S.D. Ill. 2018).

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Consum. Fin. Prot. Bureau v. RD Legal Funding, LLC, 332 F. Supp. 3d 729 (S.D. Ill. 2018). · cites it 15× “CFPA Claims The Complaint alleges five CFPA claims against the RD Entities: (1) Count I alleges that the RD Entities engaged in deceptive acts or practices, 12 U.S.C. §§ 5531 (a), 5536(a)(1)(B), by misrepresenting that the Purchase Agreements constituted valid and enforceable…”

Consum. Fin. Prot. v. Chance Gordon, 819 F.3d 1179 (9th Cir. 2016). · cites it 6× “The CFPB Litigation Against Gordon In July 2012, the CFPB filed a civil enforcement action against Gordon, alleging that he violated two sections of the Consumer Financial Protection Act (CFPA) ( 12 U.S.C. §§ 5531 , 5536) through unfair and deceptive practices— namely,…”

PHH Corp. v. Consum. Fin. Prot. Bureau, 881 F.3d 75 (D.C. Cir. 2018). · cites it 6× “” 12 U.S.C. § 5531 (e). 6. The CFPB is required to “conduct an assessment of each significant rule or order” addressing “the effectiveness of the rule or order in meeting the purposes and objectives” of the statute and the goals of the agency, using the “available evidence and…”

Cmty Fin Assoc Am. v. CFPB, 51 F.4th 616 (5th Cir. 2022). · cites it 5× “at 2193 (citing 12 U.S.C. §§ 5531 (a)–(b), 5581(a)(1)(A), (b)).”

Consum. Fin. Prot. Bureau v. ITT Educ. Servs., Inc., 219 F. Supp. 3d 878 (S.D. Ind. 2015). · cites it 8× “Factual and Procedural Background Plaintiff Consumer Financial Protection Bureau (“the Bureau”), a United States federal agency, has brought this suit against Defendant, alleging violations of provisions of the Consumer Financial Protection Act (“CFPA”), 12 U.S.C. §§ 5531 (a),…”

Consum. Fin. Prot. Bureau v. Accrediting Council for Indep. Colleges & Schs., 854 F.3d 683 (D.C. Cir. 2017). · cites it 4× “The purpose of this investigation is also to determine whether Bureau action to obtain legal or equitable relief would be in the public interest.”

Pennsylvania v. Navient Corp., 354 F. Supp. 3d 529 (M.D. Penn. 2018). · cites it 3× “" 12 U.S.C. § 5531 (c)(1)(A)-(B). And, in relevant part, abusive acts or practices *563 are defined as "tak[ing] unreasonable advantage of the reasonable reliance by the consumer on a covered person to act in the interests of the consumer.”

Consum. Fin. Prot. Bureau v. Morgan Drexen, Inc., 60 F. Supp. 3d 1082 (C.D. Cal. 2014). · cites it 3× “§ 310 , and the Consumer Financial Protection Act (“CFPA”), 12 U.S.C. §§ 5531 , 5536(a)(1) (counts 1-4), and two solely for 'violations of the CFPA (counts 5-6).”

Consum Fincl Protc Bur v. All Amer Check Cashing, 952 F.3d 591 (5th Cir. 2020). · cites it 5× “14 While consolidating the dispersed enforcement regime with its vulnerability to agency capture, Congress remained attentive to the nigh 7 12 U.S.C. § 5531 . 8 See id. §§ 5512(b), 5514–16.”

Consum. Fin. Prot. Bureau v. Nat'l Collegiate Master Student Loan Trust, 96 F.4th 599 (3rd Cir. 2024). · cites it 3× “(quoting 12 U.S.C. § 5531 (a)). 65 12 U.S.C. § 5481 (6)(A).”

Consum. Fin. Prot. v. Seila Law LLC, 923 F.3d 680 (9th Cir. 2019). “” The CID also identifies the provision of law applicable to the alleged violation as “Sections 1031 and 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531 , 5536; 12 U.S.C. § 5481 et seq.”

Consum. Fin. Prot. Bureau v. Mortg. Law Grp., LLP, 157 F. Supp. 3d 813 (W.D. Wis. 2016). · cites it 2× “Accordingly, defendants will have until February 5, 2016 to show cause why they should not be found subject to the Consumer Financial Protection Act, 12 U.S.C. §§ 5531 and 5536, and Regulation O, 12 C.”

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— 12 U.S.C. § 5531(a) — 2 cases

Hammett v. Portfolio Recovery Assocs. LLC (E.D. Ark. 2022).

Schneider v. Credit Human Fed. Credit Union (N.D. Ohio 2022).

— 12 U.S.C. § 5531(d)(2)(A) — 2 cases

Dunn v. Global Trust Mgmt., LLC (M.D. Fla. 2020).

McIntosh v. Global Trust Mgmt., LLC (M.D. Fla. 2020).

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