Abusive

Abusive in the United States

Abusive Acts or Practices

The Dodd-Frank Act also prohibits conduct that constitutes an abusive act or practice. An act or practice is abusive when it:

  • Materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or
  • Takes unreasonable advantage of the below.

Advantage of:

  • a consumer’s lack of understanding of the material risks, costs, or conditions of the product or service;
  • a consumer’s inability to protect his or her interests in selecting or using a consumer financial product or service; or
  • a consumer’s reasonable reliance on a covered person to act in his or her interests. See the Dodd-Frank Act § 1031(d), 12 U.S.C. § 5531(d); see also CFPB Exam Manual at UDAAP 9; Stipulated Final Judgment and Order, Conclusions of Law ¶ 12, 9:13-cv-80548 and Compl. ¶¶ 55-63, CFPB v. Am. Debt Settlement Solutions, Inc., 9:13-cv-80548 (S.D. Fla. May 30, 2013). The Stipulated Final Judgment and Order was signed by U.S. District Judge Middlebrooks and entered on the court docket on June 6, 2013. See Stipulated Final J. & Order [ECF Docket Entry No. 5], 9:13-cv-80548 (S.D. Fla.).

It is important to note that, although abusive acts or practices may also be unfair or deceptive, each of these prohibitions are separate and distinct, and are governed by separate legal standards (CFPB Exam Manual at UDAAP 9).

The obligation to avoid unfair, deceptive, or abusive acts or practices under the Dodd-Frank Act is in addition to any obligations that may arise under the FDCPA. Original creditors and other covered persons and service providers involved in collecting debt related to any consumer financial product or service are subject to the prohibition against unfair, deceptive, or abusive acts or practices in the Dodd-Frank Act.

Resources

See Also

Further Reading (Articles)

Regulatory: Why Is “Abusive” the Most Feared Word in Dodd-Frank?, Mondaq Business Briefing; April 15, 2013

California Responds to Abusive Tax Schemes., Mondaq Business Briefing; July 30, 2003; Matsubara, Kerne

A Preliminary Model of Abusive Behavior in Organizations, Southern Business Review; April 1, 2005; Valle, Matthew

The Counseling Corner: Abusive Relationships Among Young People, Atlanta Inquirer; May 5, 2001

Abusive Head Trauma Often Missed in Young Children., RN Advanced Practice Alert; May 1, 1999

Parent eduaction: An evaluation of STEP on abusive parents’ perceptions and abuse potential, Journal of Child and Adolescent Psychiatric Nursing; July 1, 1998; Fennell, Dana C

CPAs at risk as government continues to attack abusive tax shelters.(Procedure & Administration), The Tax Adviser; March 1, 2008; McGowan, John R.

Gender-Based Violence: Opportunities and Coping Resources for Women in Abusive Unions, Gender & Behaviour; December 1, 2013; Gumani, Masefako Mudhovozi, Pilot

Subordinate Self-Esteem and Abusive Supervision *, Journal of Managerial Issues; September 22, 2006; Burton, James P. Hoobler, Jenny M.

Internal Revenue Service: Challenges Remain in Combating Abusive Tax Shelters., General Accounting Office Reports & Testimony; November 1, 2003

‘Chilling Effect’ of ‘Abusive’ in Dodd-Frank, American Banker; November 23, 2010; Hopkins, Cheyenne

Abusive Parenting May Have a Biological Basis, NewsRx Health; October 27, 2013

Beware the signs of an abusive man: Get help or get out.(News), Post (South Africa); June 6, 2007

Treasury: IRS to Aggressively Go After Abusive Bond Deals., The Bond Buyer; October 26, 2004; Barnett, Susanna Duff

Disengaging from abusive boss is worst strategy, study shows, Jerusalem Post; January 5, 2012; JUDY SIEGEL

Internal Revenue Service: Challenges Remain in Combating Abusive Tax Schemes., General Accounting Office Reports & Testimony; January 1, 2004

Trapped: Technology as a Barrier to Leaving an Abusive Relationship, College Student Journal; December 1, 2013; Halligan, Caitlin Knox, David Brinkley, Jason

The Lingering Impact of Abusive Supervision, Journal of Applied Management and Entrepreneurship; January 1, 2013; Kacmar, K. Michele Whitman, Marilyn V. Harris, Kenneth J.

Looking for Clues on “Abusive”: First CFPB Action Doesn’t Provide Much Clarity, ABA Banking Journal; August 1, 2013; Pinder, Thomas

PROCEDURAL INJUSTICE, VICTIM PRECIPITATION, AND ABUSIVE SUPERVISION, Personnel Psychology; April 1, 2006; Tepper, Bennett J Duffy, Michelle K Henle, Christine A Lambert, Lisa Schurer


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