Unfair and Deceptive Acts and Practices (UDAP and UDAAP)

The Consumer Financial Protection Bureau (Bureau or CFPB) has issued Consumer Financial Protection Circular 2022–02, titled, ‘‘Deceptive representations Involving the FDIC’s Name or Logo or Deposit Insurance.’’ In this circular, the Bureau responds to the question, ‘‘When do representations involving the name or logo of the Federal Deposit Insurance Corporation (FDIC) or about deposit insurance constitute a deceptive act or practice in violation of the Consumer Financial Protection Act (CFPA)? ’’

The Consumer Financial Protection Bureau (Bureau or CFPB) has issued Consumer Financial Protection Circular 2022–04, titled, ‘‘Insufficient Data Protection or Security for Sensitive Consumer Information.’’ In this circular, the Bureau responds to the question, ‘‘Can entities violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security?’’

The Consumer Financial Protection Bureau (Bureau or CFPB) has issued Consumer Financial Protection Circular 2023–01, titled ‘‘Unlawful Negative Option Marketing Practices.’’ In this circular, the Bureau responds to the question, ‘‘Can persons that engage in negative option marketing practices violate the prohibition on unfair, deceptive, or abusive acts or practices in the Consumer Financial Protection Act (CFPA)? ’’

The Consumer Financial Protection Bureau (Bureau or CFPB) has issued Consumer Financial Protection Circular 2024–01, titled, ‘‘Preferencing and steering practices by digital intermediaries for consumer financial products or services.’’ In this circular, the Bureau responds to the question, ‘‘Can operators of digital comparison-shopping tools or lead generators violate the Consumer Financial Protection Act (CFPA) by preferencing products or services based on financial or other benefits to the operator?’’

The Consumer Financial Protection Bureau (CFPB) has issued Consumer Financial Protection Circular 2024–03, titled, ‘‘Unlawful and Unenforceable Contract Terms and Conditions.’’ In this circular, the CFPB responds to the question, ‘‘Can persons that include unlawful or unenforceable terms and conditions in contracts for consumer financial products and services violate the prohibition on deceptive acts or practices in the Consumer Financial Protection Act (CFPA)?’’

The Consumer Financial Protection Act of 2010 (CFPA) prohibits any ‘‘covered person’’ or ‘‘service provider’’ from ‘‘engag[ing] in any unfair, deceptive, or abusive act or practice’’ and defines abusive conduct.

Model Consumer Credit Act (1973) (325 pages) builds on NCLCs 1970 National Consumer Act (NCA).  It is also a response to the inadequacies of the Uniform Consumer Credit Code drafted by the National Commissioners on Uniform State Laws (now the Uniform Laws Commission). While covering many of the same topics as the NCA, it has more extensive treatment of assignee attempts to cut off liability, door-to-door sales, credit card errors, credit reporting, and injunctions and class actions.

National Consumer Act (1970) is a 156-page comprehensive model law covering many aspects of consumer protection.   The NCA’s consumer credit provisions limit interest rates, late and other charges, and provide prepayment rights. It more generally establishes requirements as to disclosures and writings in consumer transactions and limits credit terms and creditor rights, such as restrictions on balloon payments, assignment of earnings, confession of judgments, holder-in-due-course status, attorney fees, and security interests.

Model Individual Tax Preparer Regulation Act (Rev. 2013) establishes a state Board of Individual Tax Preparers, sets out the board’s powers, and requirements for tax preparers concerning registration, bonding, periodic registration renewal, and enforcement powers,. The model law sets out disclosure requirements to consumers, prohibited practices for tax preparers, and private remedies for consumers.

NCLC’s Model Manufactured Home Community Stability and Preservation Act (2023) sets forth model language to give residents of manufactured home communities an opportunity to purchase their communities. It requires the community owner to give the residents—and a state agency, the local housing authority, and the local licensing or health and safety enforcement agency—advance notice of any prospective sale of the community. The notice must include the price, terms, and conditions that the community owner has provisionally accepted or is prepared to accept.