Revises how the consumer finance regulator defines, writes rules for, and enforces unfair, deceptive, or abusive acts or practices. It narrows the “abusive” standard, requires cost‑benefit analysis for UDAAP rules, bars treating discrimination as a UDAAP violation, and adds new procedures before penalties or lawsuits can proceed.

Firms that self‑identify potential problems get a 180‑day cure period after the Bureau’s notice. Enforcement must be filed either where the company is headquartered or in D.C., with detailed allegations and no “alternative” U/D/A pleading. Civil money penalties are limited in several ways, including a bar on penalties for conduct that occurred before the firm’s most recent consumer compliance rating. The Bureau must also issue rules within 180 days on penalty policies and how mitigating factors apply.