Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims. In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive.
- The Consumer Financial Protection Bureau’s (CFPB) suit against a for-profit college for violation of the Consumer Financial Protection Act (CFPA) alleged that it committed “unfair” and “abusive” acts or practices. The college argued that “unfair” and “abusive” are undefined and “standardless” terms that fail to give notice of what is prohibited. The court disagreed, finding that the body of authority regarding the “unfair” standard under the Federal Trade Commission Act provides a century’s worth of guidance on its meaning, and that the CFPA’s “abusive” standard provides “at least the minimal level of clarity” that due process requires. The court noted, however, that it was not deciding whether the “abusive” standard might be unconstitutionally vague when applied in other contexts. Consumer Financial Protection Bureau v. ITT Education Services, Inc., United States District Court for the Southern District of Indiana.