![Hand on paperwork.](https://www.ccul.org/wp-content/uploads/2024/02/021624bill-300x199.jpg)
The Consumer Financial Protection Bureau (CFPB) issued a Consumer Financial Protection Circular 2024-03 warning that the use of unlawful or unenforceable terms and conditions in contracts for consumer financial products or services may violate the prohibition on deceptive acts or practices in the Consumer Financial Protection Act (CFPA).
According to the press release, Director Chopra said, “Federal and state laws ban a host of coercive contract clauses that censor and restrict individual freedoms and rights… The CFPB will take action against companies and individuals that deceptively slip these terms into their fine print.”
Under the CFPA, a representation, omission, act or practice is deceptive when:
The CFPB indicated that it has taken action against what it believes to be unlawful conduct on many occasions over the past several years, including deceptive behavior:
Credit unions are strongly recommended to review their product and service contracts to identify and modify any terms that may violate the CFPA’s prohibition on deceptive acts and practices. The CFPB has indicated that “companies may be liable even if the unenforceable terms are borrowed from form templates or widely available contracts.”
Access the ‘Compliance Hotline’
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:
Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
For more information, email Lisa Quaranta.
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