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Definition of “motor vehicle:”
The definition includes recreational boats,motorcycles, motor homes, RVs, etc. §1029(f).
Basic allocation between CFPB & FTC
The basic breakdown (with some tweaks) isthat the “
” and other dealer-finance models are under CFPB jurisdiction, while the “originate-to-sell” or brokered-loan model
)model stays with FTC.
The FTC is granted APA rule-making authority to issue UDAP rulesapplicable to the dealers under its jurisdiction. §
By its terms,this FTC UDAP authority is not limited to rules relating to financialproducts and practices.
The FTC does not have APA rulemaking authority as to dealers subject toCFPB authority, but retains enforcement authority concurrent with theCFPB.
Vehicle financing itself is not excluded from CFPB jurisdiction, just qualifyingdealers
The dealer exclusion is personal to qualifying dealers. The vehicle financingproducts and practices themselves are not the subject of a categorical exclusion
If someone other than an excluded dealer is a provider of vehiclefinancing products and services, that provider is covered, absent its ownindependent exclusion.
The exclusion also only applies to qualifyingdealers’ three party vehicle-financing business. As noted above, CFPB willhave jurisdiction over dealers to the extent dealers provide otherfinancial products or services,
mortgage products or payday loansare subject to CFPB without regard to the dealer exclusion.
UDAP and UDAAP
The reference to “UDAP” in the chart below refers to “unfairand deceptive acts and practices,” familiar from the FTC Act and state laws.§1031(a) “UDAAP” is not a typo – it refers to the CFPB’s statutory charge to prevent“unfair, deceptive, or abusive” acts or practices.
“Abusive” is defined as an act or practice that “materially interferes withthe ability of a consumer to understand a term or condition of aconsumer financial product or serve; or takes unreasonable advantage of a lack of understanding on the part of the consumer or the material risks,costs, or conditions of the product or services; the inability of theconsumer to protect the interests of the consumer in selecting or using aconsumer financial product or service; or the reasonable reliance by theconsumer on a covered person to act in the interests of the consumer.”§
This statutory definition of “abusive” resonates of unconscionabilitydoctrine, and the pre-1980
test for unfairness used bythe FTC.
The term (undefined) was first used in the 1994 HOEPA