When it comes to Unfair, Deceptive, or Abusive Acts or Practices (UDAAP), we can’t really turn to a regulation for guidance. All we have to go on is the actual law, aka Section 5 of the Federal Trade Commission Act and the Dodd-Frank Act. Typically, a law is passed by Congress, and that provides the framework for regulation to be written that fills in the gaps. With no regulation filling in the gaps, examiners are left with a lot of gray areas, and “compliance” is often subjective. Confusion even arises as to who is required to comply with UDAAP requirements?
Jerod explains more in the video.
Video Highlights:
- Two laws exist to protect against unfair, deceptive, or abusive acts or practices: Section Five of the Federal Trade Commission Act and Sections 1031 and 1036 of the Dodd-Frank Act
- These regulations apply to all financial institutions regardless of CFPB supervision.
- State laws and regulations may also apply.
