Consumer Law

Carey Alexander Paper on the Meaning of "Abusive" in the Dodd-Frank Act

By Jeff Sovern

I've never before posted to the Blog a link to a paper written by one of my students, but this paper deserves to be seen by those interested in the Dodd-Frank Act. Carey Alexander has written Abusive: Dodd-Frank Section 1031 and the Continuing Struggle to Protect Consumers.  He does a professional job of tracing through the drafting history of the provision of the Act that gives the Consumer Financial Protection Bureau the power to ban abusive practices, and discusses its application to consumer protection problems.  Here's the abstract:

Section 1031 of the Dodd?Frank Wall Street Reform and Consumer Protection Act , which defines the powers of the new Consumer Financial Protection Bureau (CFPB), fundamentally reshaped the consumer protection landscape. Beyond empowering the CFPB to address unfair and deceptive practices, Congress established a broad new consumer protection doctrine to reach "abusive" practices. This Note first contextualizes the need for Section 1031 by examining the roots and shortcomings of existing consumer protection law as embodied in unfairness, deception, and unconscionability doctrines. Next, it chronicles Section 1031's enactment, paying close attention to the Obama Administration?s proposed definitions for unfairness, deception, and abusive, along with Congress?s replies. Finally, it applies the enacted definition of ?abusive? to several widespread practices in the consumer credit market, urging the CFPB to adopt a broad interpretation of the term as consistent with Congress?s long?standing intent to protect consumers.

Full post as published by CL&P Blog on December 25, 2010 (boomark / email).