The New Era of Regulatory Enforcement: A Comprehensive Guide for Raising the Bar to Manage Risk

Chapter 8

Unfair, Deceptive, and Abusive Consumer Finance Practices

Amy S. Matsuo

Amid the 2007–2008 financial crisis, rising mortgage foreclosures and consumer debt levels in the United States created a public outcry in favor of more protection for consumers. Investigations and supervisory and enforcement actions uncovered a variety of unfair, deceptive, abusive, and/or unethical practices that were deemed to be harmful to consumers.

Leading up to the crisis, federal oversight of consumer finance was a patchwork of regulations administered by multiple federal agencies. None of these agencies had sufficient jurisdiction to ensure that consumer financial markets as a whole functioned fairly for consumers. The fragmentation of regulatory authority ...