US HB1652

Requires the CFPB to issue rules within 180 days defining "abusive act or practice" and establishing policies for civil monetary penalties, including cost-benefit analysis requirements for all UDAAP-related rules

Raises the standard for finding conduct "abusive" by requiring proof of intentional and material interference with consumer understanding, or that the covered person took unreasonable advantage of consumer misunderstanding combined with reasonable consumer reliance on affirmative representations

Prohibits the CFPB from seeking monetary penalties against companies that demonstrate good-faith compliance efforts, and bars the Bureau from interpreting UDAAP authority to include discrimination claims

Creates a 180-day "notice and opportunity to cure" period for companies that self-identify potential UDAAP violations before the Bureau can pursue legal action, with statute of limitations tolled during this period

Restricts enforcement actions to federal courts where the company is headquartered or D.C., prohibits alternative pleading of "unfair/deceptive" and "abusive" claims in the same case, and limits civil penalties to conduct occurring after the most recent compliance rating assignment