---
title: Overdrafts & UDAAP Risk
description: Explore the regulatory landscape of overdraft fees and UDAAP risks, detailing the criteria for unfair and abusive practices in financial institutions.
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [Overdrafts & UDAAP Risk](https://blog.bankerscompliance.com/en/overdrafts-udaap-risk)

 Written by [Jerod Moyer](https://blog.bankerscompliance.com/en/author/jerod-moyer) | Jun 23, 2026 4:08:39 PM

It’s no secret that the regulatory agencies do not like overdraft fees and often scrutinize financial institution overdraft practices. While there have been a few regulatory changes related to overdrafts and some guidance issued over the years, we haven’t seen any sweeping overdraft reform. Even where the regulations and guidance may be lacking, UDAAP is always a threat. Section 5 of the FTC Act spells out specific criteria that must be met for a practice to be considered “unfair” and/or to be considered “deceptive”. Sections 1031 and 1036 of the [Dodd-Frank Act](https://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm) also provide specific criteria for a practice considered to be “abusive”.

Jerod explains these criteria in the video.

Published 2026/06/23

[View full post](https://blog.bankerscompliance.com/en/overdrafts-udaap-risk)

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