Have You Taken Any Shortcuts in Your Documentation

On June 4, the Consumer Financial Protection Bureau (“CFPB”) issued Circular 2024-03 regarding unlawful and unenforceable contract terms and conditions. The CFPB asserted that covered persons and service providers can violate the Consumer Financial Protection Act’s (“CFPA”) prohibition on deceptive acts and practices by including various terms that, among other things, (i) purport to waive or otherwise limit consumer rights or (ii) hide or misrepresent the terms applicable to consumers by using vague language to qualify language with broad disclaimers such as “subject to applicable law,” leaving the impression that an inapplicable or otherwise unenforceable provision could actually apply to a particular consumer. Read More