12 USC 5531 - Prohibiting unfair, deceptive, or abusive acts or practices

U.S Code last checked for updates: Nov 25, 2024

§ 5531.

Prohibiting unfair, deceptive, or abusive acts or practices

(a)

In general

(b)

Rulemaking

(c)

Unfairness

(1)

In general

The 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

(d)

Abusive

The 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

(f)

Consideration of seasonal income

(Pub. L. 111–203, title X, § 1031, July 21, 2010, 124 Stat. 2005.)

cite as: 12 USC 5531