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New Financial Firm Rules: Clear Definitions and Consumer Protection

This act introduces clearer rules for financial product providers to protect consumers from unfair practices. It defines what constitutes "abusive acts" and gives companies a chance to fix issues before penalties are imposed. The goal is to ensure citizens better understand financial terms and are protected from harmful actions.
Key points
Financial firms will need to adhere to clearer definitions of "abusive acts" in their operations, aiming to prevent vague accusations.
A cost-benefit analysis is now required for new rules concerning unfair practices, which may influence how new regulations are developed.
Companies that self-identify potential issues may have 180 days to correct them before further legal action is taken.
The act limits the consumer financial protection agency's ability to interpret discrimination as an "abusive act."
Limitations are placed on financial penalties for past violations, which may affect how far back the agency can pursue companies.
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Additional Information
Print number: 119_HR_1652
Sponsor: Rep. Barr, Andy [R-KY-6]
Process start date: 2025-02-27
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rectifying UDAAP Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1652.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-02-27.

What are the main provisions?

Key points include:

  • Financial firms will need to adhere to clearer definitions of "abusive acts" in their operations, aiming to prevent vague accusations.
  • A cost-benefit analysis is now required for new rules concerning unfair practices, which may influence how new regulations are developed.
  • Companies that self-identify potential issues may have 180 days to correct them before further legal action is taken.
  • The act limits the consumer financial protection agency's ability to interpret discrimination as an "abusive act."
  • Limitations are placed on financial penalties for past violations, which may affect how far back the agency can pursue companies.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Barr, Andy [R-KY-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Courts and Law Economy