Rectifying UDAAP Act
Official title: To amend the Consumer Financial Protection Act of 2010 to clarify standards for UDAAP enforcement actions brought by the Bureau of Consumer Financial Protection, and for other purposes.
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Referred to the House Committee on Financial Services.
Rectifying Undefined Descriptions of Abusive Acts and Practices Act or the Rectifying UDAAP Act
This bill restricts the Consumer Financial Protection Bureau’s (CFPB’s) authority to deem a financial act or practice abusive for purposes of enforcement activities. Currently, the CFPB may take enforcement action against a financial product or service provider in connection with any transaction with a consumer for a consumer financial product or service that is unfair, deceptive, or abusive.
Specifically, the bill prohibits the CFPB from including discrimination as an abusive practice. Further, the bill revises what an abusive practice is, including by additionally requiring the practice to intentionally interfere with the ability of a consumer to understand a term or condition.
The bill also establishes additional criteria for abusive practices. Particularly, a practice is considered abusive if (1) it causes or is likely to cause substantial injury to consumers that is not reasonably avoidable by consumers, where timely disclosed conduct is presumed to be reasonably avoidable; or (2) the substantial injury is not outweighed by countervailing benefits to consumers or to competition.
The bill also eliminates the CFPB’s ability to seek monetary relief for unfair, deceptive, or abusive practices if the provider establishes a good faith effort to comply with requirements.
The bill establishes rulemaking requirements, including requiring a cost-benefit analysis for a rule relating to unfair, deceptive, or abusive practices.
Finally, the bill establishes the right for providers to cure violations if they self-report and limits the CFPB’s use of alternative claims in court.
- Introduced in House Formatted Text PDF Formatted XML
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- CROSSROADS STRATEGIES, LLC
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Bodies those filers lobbied
- HOUSE OF REPRESENTATIVES
- SENATE
- Treasury, Dept of
- Federal Reserve System
- Consumer Financial Protection Bureau (CFPB)
- Housing & Urban Development, Dept of (HUD)
- Office of Management & Budget (OMB)
- Small Business Administration (SBA)
Cite this page
U.S. Congress. (2026). H.R. 1652: Rectifying UDAAP Act. 119th Congress. Open America. https://openamerica.io/bill/119-HR-1652/
"H.R. 1652: Rectifying UDAAP Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-1652/.
H.R. 1652, 119th Cong. (2026), https://openamerica.io/bill/119-HR-1652/.
[H.R. 1652: Rectifying UDAAP Act](https://openamerica.io/bill/119-HR-1652/)