Federal regulatory body decides to abandon challenge in case concerning unfair, deceptive, or abusive acts or practices lawsuit
In a recent development, the Consumer Financial Protection Bureau (CFPB) has announced that it will dismiss its appeal in a lawsuit concerning the Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) manual. This decision comes after a joint stipulation was filed with several trade groups, including the American Bankers Association (ABA) and the U.S. Chamber of Commerce.
The lawsuit, filed in September 2022, alleged that the CFPB's changes to the UDAAP manual exceeded the agency's statutory authority under the Dodd-Frank Act and violated proper notice-and-comment rulemaking procedures. In August 2024, the CFPB had filed its appellant brief with the Fifth Circuit, appealing Judge J. Campbell Barker's decision to vacate the policy update. However, last week's joint stipulation marks the end of this particular legal battle.
Rob Nichols, CEO of the ABA, welcomed this decision, praising the new CFPB leadership for their decision to dismiss the three-year-long case. Chris Furlow, CEO and president of Texas Bankers Association, also lauded the decision, expressing his appreciation for the CFPB's recognition of the overreach in the UDAAP manual update.
As of late July 2025, there is no specific public information about a new lawsuit from the CFPB concerning the UDAAP manual update or its use for discrimination investigation under UDAAP authority. The available recent legal actions involving the CFPB focus primarily on other rules and enforcement matters.
Notable examples include community groups challenging the CFPB's delay and rule changes regarding the Section 1071 rule, which pertains to small business lending data collection. This lawsuit, however, is not UDAAP or discrimination-specific. Another recent action involves the CFPB's withdrawal of a proposed rescission of a state notice rule required under the Consumer Financial Protection Act, a move that does not relate to UDAAP or discrimination investigations.
The CFPB's enforcement activity updates also involve settlements on Military Lending Act violations and the termination of older consent orders unrelated to UDAAP manual updates. Given these details, the status of any new lawsuit specifically targeting the CFPB’s UDAAP manual update for discrimination investigation appears not publicly reported or does not currently exist in the sources available up to July 2025.
The CFPB's decision to dismiss its appeal in the UDAAP manual lawsuit marks a significant step towards resolving disputes related to the agency's regulatory powers. However, the absence of new litigation related to discrimination under UDAAP raises questions about the CFPB's future enforcement priorities in this area. If you need details about the Section 1071 lawsuit or the CFPB's broader enforcement priorities and rulemaking challenges, further insights are available.
- The dismissal of the CFPB's appeal in the UDAAP manual lawsuit, as well as the lack of new litigation related to discrimination under UDAAP, could signal a shift in the CFPB's future enforcement priorities in finance and business, particularly in areas such as small business lending, sparking discussions among political and general-news circles.
- The resolution of the UDAAP manual lawsuit, combined with ongoing legal actions related to the Section 1071 rule and the CFPB's enforcement activities like Military Lending Act violations, illustrates a complex and evolving landscape for the CFPB within the broader context of business, politics, and general-news, requiring careful monitoring to fully understand the agency's regulatory powers and enforcement strategies.
