§5531 Prohibiting Unfair, Deceptive, or Abusive Acts or Practices

Summary

The Bureau can stop companies or service providers from using unfair, deceptive, or abusive practices in any deal with a consumer for a financial product or service, or when they offer those products or services. The Bureau can also make rules that say which actions are illegal and can require steps to prevent them. The Bureau can only call a practice "unfair" if it has a reasonable basis to think it causes big harm that consumers cannot reasonably avoid and the harm is not outweighed by benefits. It can only call a practice "abusive" if it blocks a consumer’s ability to understand key terms or it unfairly takes advantage of a consumer’s confusion, inability to protect themselves, or trust in the provider. When making rules, the Bureau must consult other federal agencies. For home loans backed by a borrower’s income (including small business income), lenders may consider seasonal or irregular income when deciding approval and payment plans.