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In a sweeping pronouncement, the Pennsylvania Office of
Attorney General has promulgated significant new regulations in
the area of enforcement of unfair, deceptive, or abusive practices.
By way of background, in 1968,
Pennsylvania enacted the Unfair Trade
Practices and Consumer Protection Law, 73
P.S. §§ 201-1–201-9.3 (the UTPCPL). At
the time the legislature enacted the UTPCPL,
it simultaneously created the Bureau of
Consumer Protection within the Attorney
General's Office, in a statute known as the
Administrative Code, 71 P.S. §§ 307-1—307-
6. In the UTPCPL, but not the Administrative
Code, the legislature granted the Attorney
General the power to promulgate regulations
that are in the interests of consumers. See 73
P.S. § 201-3.1 (added in 1976), which states,
"e Attorney General may adopt, after
public hearing, such rules and regulations as
may be necessary for the enforcement and
administration of this act [the UTPCPL] … "
IN CONTEXT
Over the last 50 years, the Bureau has used
that regulatory power rarely, namely in the areas
of debt collection and in automobile regulation.
us, this new set of proposed regulations
represents a significant step by the Attorney
General and certainly defines new terms
that will affect servicers and lenders in the
state of Pennsylvania. e notice of Proposed
Rulemaking was published by the Attorney
General on August 31, 2019, and provided for
THE EXPANSION
OF POWERS
Regulatory changes in Pennsylvania related to enforcement of unfair,
deceptive, or abusive practices could have implications for mortgage
servicers.
Quick Take By: Stephen Hladik
