,i #aaith ,,congress #ast ,session ,h4 ,r4 #afeb ,,in ,,the ,,house ,,of ,,representatives ,february #bg1 #bjbe,mr4 ,barr introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,consumer ,financial ,protection ,act of #bjaj to clarify standards for ,,udaap enforcement actions brought by the ,bureau of ,consumer ,financial ,protection1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,rectifying ,undefined ,descriptions of ,abusive ,acts and ,practices ,act or the ,rectifying ,,udaap ,act4 #b4 ,mitigating factors in assessing civil penalties ,section #ajee7;c7 of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eefe7;c77 is amended by adding at the end the following3 7#f7 ,rulemaking ,the ,bureau shall1 not later than #ahj days after the date of the enactment of this paragraph1 issue a rule that establishes policies and procedures relating to the imposition of civil monetary penalties sought under this subsection1 including the application of the mitigating factors described in paragraph 7#c74 4 #c4 ,rulemaking relating to unfair1 deceptive or abusive acts or practices 7a7 ,in general ,section #ajca of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeca7 is amended by striking subsection 7b7 and inserting the following3 7b7 ,rulemaking 7#a7 ,in general ,the ,bureau may prescribe rules applicable to a covered person or service provider identifying as unlawful unfair1 deceptive1 or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service1 or the offering of a consumer financial product or service4 ,rules under this section may include requirements for the purpose of preventing such acts or practices4 7#b7 ,cost benefit analysis required ,any final rule issued by the ,bureau relating to abusive1 unfair1 or deceptive acts or practices shall include a cost-benefit analysis4 7#c7 ,definition of abusive act or practice ,the ,bureau shall1 not later than #ahj days after the date of the enactment of this subsection1 issue a rule that defines the term abusive act or practice for the purposes of this section4 4 7b7 ,opportunity for comment ,the ,bureau of ,consumer ,financial ,protection shall1 not later than #ahj days after the date of the enactment of this subsection1 allow the public to submit comments with respect to any confusion about how the ,bureau of ,consumer ,financial ,protection uses its authority with respect to unfair1 deceptive1 or abusive acts or practices4 #d4 ,authority to declare an act unlawful based on discrimination ,the ,bureau of ,consumer ,financial ,protection may not interpret the authority of the ,bureau of ,consumer ,financial ,protection relating to unfair1 deceptive1 or abusive acts and practices1 as such term is used in section #ajca of the ,consumer ,financial ,protection ,act of #bjaj1 to include discriminatory practices4 #e4 ,clarifying the abusive standard for the ,bureau of ,consumer ,financial ,protection ,section #ajca of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeca7 is amended by striking subsection 7d7 and inserting the following3 7d7 ,abusive 7#a7 ,in general ,the ,bureau shall have no authority to declare an act or practice of a covered person abusive in connection with the provision of a consumer financial product or service1 unless the act or practice-- 7,a7 intentionally and materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service2 or 7,b7 takes unreasonable advantage of-- 7i7 a lack of understanding by the consumer with respect to the possible impact1 material risks1 costs1 or conditions of the product or service1 or the likelihood of the risks1 costs1 or conditions of the product or service negatively affecting the consumer2 and 7ii7 the reasonable reliance the consumer places on an affirmative action or representation of such covered person to induce such consumer to rely on such action or representation4 7#b7 ,abusive actions ,conduct of a covered person shall be considered abusive if-- 7,a7 the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers1 provided1 however1 that if the act or practice was timely1 clearly and conspicuously disclosed to consumers1 the injury is presumed to be reasonably avoidable2 or 7,b7 such substantial injury is not outweighed by countervailing benefits to consumers or to competition4 7e7 ,good-,faith effort ,to comply 7#a7 ,in general ,the ,bureau may not seek monetary relief from a covered person under this section unless the covered person has not established by a preponderance of the evidence that they made a good-faith effort to comply4 7#b7 ,authority to seek legal or equitable remedies ,the limitation described in subparagraph 7,a7 shall not restrict the authority of the ,bureau to seek legal or equitable remedies1 such as damages and restitution1 to redress an identifiable consumer injury caused by the abusive acts or practices of such covered person4 4 #f4 ,notice and opportunity to cure ,section #ajca of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeca7 is amended by adding at the end the following3 7g7 ,notice and opportunity ,to cure 7#a7 ,in general ,if a covered person self-identifies a potential unfair1 deceptive1 or abusive act or practice carried out by such covered person1 the ,bureau shall1 not later than #ij days after such self-identification1 provide a written notice in the form of a potential action and request for response letter or a notice and opportunity to respond and advise letter of the potential unfair1 deceptive1 or abusive act or practice to such covered person and inform the covered person that such person has #ahj days after the date the covered person receives such notice to cure such potential unfair1 deceptive1 or abusive act before the ,bureau may pursue other legal action4 7#b7 ,tolling of statute of limitations ,any applicable statute of limitations that applies to conduct under which the ,bureau has given notice and an opportunity to cure shall not toll until-- 7,a7 the covered person cures the potential abusive1 unfair1 or deceptive act or practice and notifies the ,bureau that such act or practice has been cured2 7,b7 the covered person notifies the ,bureau that such covered person will not cure the act or practice2 or 7,c7 the #ahj-;day period to cure ends4 4 #g4 ,abusive1 unfair1 or deceptive acts or practices enforcement actions 7a7 ,in general ,subtitle ,e of title ,x of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eefa et seq47 is amended by adding at the end the following new section3 #ajei4 ,unfair1 ,deceptive1 or ,abusive ,acts or ,practices ,enforcement ,actions ,enforcement actions brought by the ,bureau under section #ajca under this title shall be brought in-- 7#a7 the ,united ,states district court located where the covered person has its headquarters location2 or 7#b7 the ,united ,states ,district ,court for the ,district of ,columbia4 4 7b7 ,actions under section #ajca ,section #ajca of the ,consumer ,financial ,protection ,act of #bjaj is amended by adding at the end the following3 7g7 ,enforcement ,actions 7#a7 ,in general ,if the ,bureau brings an enforcement action under this section1 the ,bureau shall state with particularity the circumstances that the ,bureau alleges constitute violation of this section4 7#b7 ,alternative ,claims ,if the ,bureau brings an enforcement action under this section-- 7,a7 claiming that an activity is unfair or deceptive1 the ,bureau may not claim in the alternative that the activity is abusive2 and 7,b7 claiming that an activity is abusive1 the ,bureau may not claim in the alternative that the activity is unfair or deceptive4 4 #h4 ,look-back provisions for the ,consumer ,financial ,protection ,bureau ,subtitle ,b of title ,x of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeaa et seq47 is amended by adding at the end the following new section3 #ajbi;,b ,examination period limitations 7a7 ,in general ,when enforcing ,federal consumer financial laws1 the ,bureau may not seek a civil money penalty for any violating conduct that occurred prior to the most recent assignment of a consumer compliance rating4 7b7 ,rule of construction ,this limitation described in subsection 7a7 may not be construed to restrict the ability of the ,bureau to seek other forms of legal or equitable relief available under subparagraphs 7,a7 through 7,g7 of section #ajee7;a77#b7 for any violating conduct that occurred prior to the most recent assignment of a consumer compliance rating4 4