Complaint to Challenge UDAAP Update

COMPLAINT

Plaintiffs-Chamber of Commerce of the United States of America, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, Independent Bankers Association of Texas, Texas Association of Business, and Texas Bankers Association-bring this action for equitable relief against Defendants, Consumer Financial Protection Bureau (CFPB) and Rohit Chopra in his official capacity as Director of the CFPB. Plaintiffs primarily challenge the CFPB's recent update to the Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) section of its examination manual.

INTRODUCTION

1. The CFPB is an agency with "vast authority." Seila L. LLC v. Consumer Fin. Prot. Bureau, 140 S. Ct. 2183, 2210 (2020). That vast authority makes the legal constraints that do exist all the more Case 6:22-cv-00381 Document 1 Filed 09/28/22 Page 1 of 25 PageID #: 1 - 2 - important. Yet the CFPB's recent update is violating its statutory authority and the Administrative Procedure Act in three main ways:

2. First, the CFPB is exceeding its statutory authority outlined in the Dodd-Frank Act. The recent update to its examination manual adopts the novel position that the CFPB can examine entities for alleged discriminatory conduct under its UDAAP authority. See CFPB Supervision and Examination Manual, Unfair, Deceptive, or Abusive Acts or Practices Section at 11, 13, 14, 17 (revised Mar. 16, 2022) (Exhibit A). But the CFPB cannot regulate discrimination under its UDAAP authority at all because Congress declined to give the CFPB authority to enforce anti-discrimination principles except in specific circumstances. The CFPB's statutory authorities consistently treat "unfairness" and "discrimination" as distinct concepts. E.g., 12 U.S.C. §5511(b); §5481(13); §5493(c)(2)(A); §5531(c); §5536(a)(1).

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