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All in UDAAP
In this unique Compliance Clip (video), Adam provides a personal experience that relates to a potential deceptive practice. Be sure to close your door for this one as the clip gets a bit bizarre in spots…
For those interested in more information on UDAAP, take a look at our UDAAP Foundations course in our store at www.compliancecohort.com/udaap-foundations.
One of the areas of greatest concern for financial institutions continues to relate to Unfair, Deceptive, or Abusive Acts or Practices (UDAAP). While UDAAP violations have been on the forefront of the minds of most compliance officers since the Dodd-Frank Act added “abusive” into the mix, this area still causes challenges for financial institutions as regulators continue to cite financial institutions for UDAAP violations for practices that had not previously been identified as unfair, deceptive, or abusive. This article explores a number of UDAAP violation examples.
On June 25, 2019, the CFPB held a symposium on abusive acts or practices. This symposium was the first in a series aimed at stimulating a proactive and transparent dialogue to assist the Bureau in its policy development process, including possible future rulemakings. The CFPB has explained that the format of each symposium will include a discussion panel of experts with a variety of viewpoints on the topic. The recent abusive acts or practices symposium included two panels of UDAAP experts and also included
In this Compliance Clip (video webinar), Adam provides a case study example of an “unfair” UDAAP violation. Warning: This video has a terrible ending that gives away trade secrets…
Adam uses this Compliance Clip (video) to provide an example of a “deceptive” UDAAP violation. The example in the video relates to television advertisements and Adam breaks down the three prongs that make this a definitive UDAAP violation example. Note: This video includes a transcript.
On 1/2/19, new CFPB director Kathleen Kraninger signed a consent order with USAA Federal Savings Bank. While the consent order outlines millions of dollars in restitutions and penalties, the order provides financial institutions with fairly detailed insights on a number of Regulation E violations identified by the Bureau. As Regulation E applies to all financial institutions regardless of their regulator, this consent order can be used as a learning tool for appropriately complying with the Regulation.
Specifically, the USAA consent order outlined six main deficiencies that resulted in either a violation of Regulation or a UDAAP violation, or both, including…
