Consumer Financial Protection Accountability and Reform Act of 2026

(b) Rulemaking

(1) In general. The Bureau may prescribe rules applicable to a covered person or service provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. Rules under this section may include requirements for the purpose of preventing such acts or practices.

(2) Cost benefit analysis required. Any final rule issued by the Bureau relating to abusive, unfair, or deceptive acts or practices shall include a cost-benefit analysis.

(3) Definition of abusive act or practice. The Bureau shall, not later than 180 days after the date of the enactment of this subsection, issue a rule that defines the term abusive act or practice for the purposes of this section.

(g) No authority To declare an act unlawful based on discrimination. The Bureau may not interpret the authority of the Bureau relating to unfair, deceptive, or abusive acts and practices to include discriminatory practices.

(d) Abusive

(1) In general. The Bureau shall have no authority to declare an act or practice of a covered person or a service provider abusive in connection with the provision of a consumer financial product or service, unless the act or practice—

(A) intentionally and materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or

(B) takes unreasonable advantage of—

(i) a lack of understanding by the consumer with respect to the possible impact, material risks, costs, or conditions of the product or service, or the likelihood of the risks, costs, or conditions of the product or service negatively affecting the consumer; and

(ii) the reasonable reliance the consumer places on an affirmative action or representation of such covered person or service provider to induce such consumer to rely on such action or representation.

(2) Abusive actions

(A) In general. Conduct of a covered person or service provider shall be considered abusive if—

(i) the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers; and

(ii) such substantial injury is not outweighed by countervailing benefits to consumers or to competition.

(B) Presumption. For purposes of subparagraph (A)(i):

(i) In general. If an act or practice was timely, clearly, and conspicuously disclosed to consumers, any substantial injury resulting from the act or practice is presumed to be reasonably avoidable.

(ii) Rebuttal. The presumption described in clause (i) may be rebutted only upon a showing, by clear and convincing evidence, that, notwithstanding such disclosure, the consumer did not have a reasonable means of avoiding the substantial injury.

(e) Good-Faith effort To comply

(1) In general. The Bureau may not seek monetary relief from a covered person or service provider under this section unless the covered person or service provider has not established by a preponderance of the evidence that they made a good-faith effort to comply with the requirements of this section.

(2) Authority to seek legal or equitable remedies

(A) In general. The limitation described in paragraph (1) shall not restrict the authority of the Bureau to seek legal or equitable remedies, such as damages and restitution, to redress an identifiable consumer injury caused by the abusive acts or practices of such covered person.

(B) Rule of construction. For purposes of subparagraph (A), a civil money penalty described in section 1055(c) is not a legal or equitable remedy.

(h) Notice and opportunity To cure

(1) In general. If a covered person self-identifies a potential unfair, deceptive, or abusive act or practice carried out by such covered person, the Bureau shall, not later than 90 days after such self-identification, 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 unfair, deceptive, or abusive act or practice to such covered person and inform the covered person that such person has 180 days after the date the covered person receives such notice to cure such potential unfair, deceptive, or abusive act before the Bureau may commence an administrative proceeding or civil action.

(2) 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—

(A) the covered person cures the potential abusive, unfair, or deceptive act or practice and notifies the Bureau that such act or practice has been cured;

(B) the covered person notifies the Bureau that such covered person will not cure the act or practice; or

(C) the 180-day period to cure ends.

(i) Venue for unfair, deceptive, or abusive acts or practices enforcement actions. Enforcement actions brought by the Bureau under this section shall be brought in—

(1) the United States district court located where the covered person has its headquarters location; or

(2) the United States District Court for the District of Columbia.

(j) Enforcement Actions

(1) In general. If the Bureau brings an enforcement action under this section, the Bureau shall state with particularity the circumstances that the Bureau alleges constitute a violation of this section.

(2) Alternative claims. If the Bureau brings an enforcement action under this section—

(A) claiming that an activity is unfair or deceptive, the Bureau may not claim in the alternative that the activity is abusive; and

(B) claiming that an activity is abusive, the Bureau may not claim in the alternative that the activity is unfair or deceptive.

1029B. Examination period limitations

(a) In general. When enforcing Federal consumer financial law, the Bureau may not seek a civil money penalty for any violating conduct that occurred prior to the most recent assignment of a rating under the Uniform Interagency Consumer Compliance Rating System of the Financial Institutions Examination Council (or any successor rating system).

(b) Rule of construction. This limitation described in subsection (a) may not be construed to restrict the ability of the Bureau to seek other forms of legal or equitable relief available under subparagraphs (A) through (G) of section 1055(a)(2) for any violating conduct that occurred prior to the most recent assignment of a consumer compliance rating.

Sec. 1029B. Examination period limitations.