Rep. Andy Barr [R-Kent.], a longtime critic of the Consumer Financial Protection Bureau, recently introduced two bills in the House of Representatives aimed at limiting the Bureau’s investigatory and enforcement authority. The legislation seeks to redefine key aspects of unfair, deceptive, or abusive acts and practices (UDAAP) enforcement and reform the civil investigative demand (CID) process.
Why it matters: If passed, these bills could significantly weaken the CFPB’s ability to regulate financial institutions and enforce consumer protection laws. This would be a major win for lenders, debt collectors, and financial service providers, while consumer advocates warn it could reduce oversight of abusive practices.
The details:
- H.R. 1652, the “Rectifying UDAAP Act”, would require the CFPB to define “abusive” acts or practices through rulemaking, conduct cost-benefit analyses for new UDAAP regulations, and prevent the Bureau from interpreting discrimination as a UDAAP violation.
- The bill also introduces a “notice and opportunity to cure” provision, giving companies 180 days to address potential violations before the CFPB can take enforcement action.
- H.R. 1653, the “Civil Investigative Demand Reform Act of 2025”, would limit the CFPB’s ability to issue CIDs beyond six years from an alleged violation and require more detailed justifications for such demands.
Not his first rodeo:
