UDAAP: The more you know about Dodd-Frank, the less you’re at risk

Failure to understand unfair, deceptive or abuse acts or practices (UDAAPs) can result in significant penalties for your nonbank company. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, your employees need to be vigilant about engaging in UDAAPs. A few examples include:

  • Taking advantage of a lack of understanding by the consumer of the material risks, costs or conditions
  • The consumer is unable to protect his or her interests when using a consumer financial product or service
  • The act is likely to mislead the consumer

Some of these acts may also violate state or federal law. But even a lawful act can raise UDAAP concerns and violate the Truth in Lending Act (TILA), the Fair Housing Act (FHA), Fair Credit Reporting Act (FCRA) among others. UDAAPs can occur during any stage in the credit lifecycle too.

Read this UDAAP guide to better understand the risks and rules of the Dodd-Frank Act

UDAAP & BSA / AML Essentials: Get Smart and Get Ahead with BAI Compliance Courses

BAI’s Nonbank Course Library provides compliance training for all of your employees on essential regulations including courses such as:

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BSA and AML Essentials

This interactive course provides an overview of the BSA, introduces the concept of money laundering and more.

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Unfair, Deceptive and Abuse Acts or Practices (UDAAP): Mitigating Risk

Intended for all employees, this interactive course provides an overview of UDAAP and how organizations can minimize risk.

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