On April 30, 2025, the ABA Banking Journal reported that the American Bankers Association, Texas Bankers Association, and other plaintiffs have reached an agreement with the CFPB to end a lawsuit over changes to the CFPB’s UDAAP exam manual.
On March 16, 2022, the CFPB updated its UDAAP Examination Manual, noting that discrimination may meet the criteria for “unfairness” by causing substantial harm to consumers that they cannot reasonably avoid, where that harm is not outweighed by countervailing benefits to consumers or competition. The ABA, Texas Bankers Association, U.S. Chamber of Commerce, and several others filed a lawsuit against the CFPB, arguing that it exceeds the agency's statutory authority, among other claims. In 2023, a federal judge issued a summary judgment vacating the CFPB’s update to the UDAAP Chapter of the CFPB’s Supervision and Examination Manual, where the CFPB filed an appeal.
Under the terms of the joint stipulation, the CFPB will dismiss its appeal. The dismissal aligns with the CFPB’s newly announced supervision and enforcement priorities for 2025.
Read the ABA Banking Journal’s article here.