Awareness on UDAAP

Financial institutions should always be on the lookout for unfair, deceptive and abusive acts or practices (UDAAP). The trouble with UDAAP is that it lurks in the gray areas that can easily be missed or overlooked. You have to consider how things look from a customer’s or potential customer’s vantage point. UDAAP is also difficult because it is very subjective and open to interpretation by your examiners.

Jerod explains more in the video.

Video Highlights:

• It’s important to maintain an awareness and be able to identify potentially unfair, deceptive, or abusive practices.
• UDAAP risk exists in the gray areas where regulations are either non-existent or stop short.
• The Federal Trade Commission is the "end all be all" when it comes to identifying something as being potentially unfair, deceptive, or abusive.

Published
2023/07/18