Compliance Insights compliance-newsletter-march-2020 | Page 3

2. Articulating Acts or Practices that Violate the Abusiveness Standard The CFPB will generally avoid challenging conduct as abusive if it relies on all or nearly all of the same facts the CFPB alleges are unfair or deceptive. The CFPB intends to plead alleged abusiveness violation claims in a manner designed to clearly demonstrate the nexus between the cited facts and legal analysis of the claim. In its supervision activity, the CFPB similarly intends to provide more clarity as to the specific factual basis for determining a covered person has violated the abusiveness standard. 3. Limits on Monetary Relief in Abusiveness Enforcement Actions The CFPB generally does not intend to seek certain types of monetary relief for abusiveness violations where the covered person was making a good-faith effort to comply with the abusiveness standard. If a covered person makes a good-faith, but unsuccessful, effort to comply with the abusiveness standard, the CFPB still intends to seek legal or equitable remedies, such as damages and restitution, to redress identifiable consumer injury caused by the abusive acts or practices that would not otherwise be redressed. They do not intend to seek civil penalties related to unusual circumstances if a covered person made good-faith efforts to comply with the abusiveness standard. In determining whether a covered person made a good-faith effort to comply with the abusiveness standard, the CFPB intends to consider all relevant factors, including but not limited to, the considerations outlined in CFPB Bulletin 2013-06 regarding Responsible Business Conduct. The Policy Statement also reminds covered persons believing regulatory uncertainty is hindering the development of new products or services that the CFPB’s Office of Innovation was installed to encourage consumer- beneficial innovation. More information about the Office of Innovation and how your institution can apply for a safe harbor testing period of a new financial product or service can be found at www.consumerfinance.gov. lll 3