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The Ultimate UDAAP Marketing Compliance Checklist for Consumer Finance Companies

For consumer finance organizations, failure to comply with UDAAP regulations can result in enforcement actions, costly penalties, and significant reputational damage.

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Not sure where to start with UDAAP Compliance?

We've got you covered.

Use this checklist to shape your organization’s UDAAP marketing compliance program—from policies and procedures, risk assessments, training and education, compliance monitoring, remediation, and technology—to ensure UDAAP compliance across your organization, and third parties and partners.

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Policies and Procedures

First, examine existing policies and procedures to identify potential gaps in UDAAP compliance. Develop and implement policies and procedures to address potential UDAAP compliance gaps.

These may include:

Marketing and advertising guidelines to ensure marketing materials are truthful, transparent, and do not contain any deceptive or misleading information

Require the use of clear and conspicuous disclosures to inform consumers about the terms and conditions of products and services

Procedures in place to promptly and effectively respond to consumer complaints and inquiries around UDAAP, submitted both internally and externally (like to the Consumer Financial Protection Bureau, for example)

Include guidelines for handling, documenting, and resolving complaints in a timely manner

Communication policies to ensure that practices are transparent and don’t involve abusive or harassing tactics across calls, messages, or emails

Include guidelines for clear and transparent disclosures when communicating with consumers about certain products or services

Ongoing training and education programs for all employees on UDAAP regulations (more on this below)

Vendor management policies for monitoring and managing third-party partners and service providers to ensure that they are compliant with UDAAP regulations

Risk Assessments

Organizations should conduct risk assessments on a regular basis to proactively identify and mitigate business risks, and to prioritize resources and budget.

Regularly evaluate all products and services offered by the company, or third-party vendors and service providers

Prioritize UDAAP risks based on the likelihood and potential impact of harm to consumers, and develop strategies for mitigating those risks

Develop and maintain a UDAAP risk management plan that includes guidelines for monitoring and mitigating UDAAP risks identified during assessments, and assign responsibility for oversight and execution of the plan

Develop procedures for responding to and reporting any UDAAP violations, including guidelines for timely and effective resolution of violations

Ensure that all third-party vendors and service providers are included in risk assessments, and establish processes for monitoring and reviewing their UDAAP risks on an ongoing basis

Regularly communicate UDAAP risk management strategies and results to senior management and the board of directors, to ensure that UDAAP risks are being effectively managed and mitigated across the organization

Training and Education

Regularly review and update the company's UDAAP policies and compliance training to stay current with changes in regulations and emerging risks by:

Staying up-to-date on the latest UDAAP regulatory trends in your industry through:

Regulatory agency websites, such as the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), the Office of the Comptroller of the Currency (OCC), the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and State Attorneys General

Industry publications, such as Compliance Week, JD Supra, and American Banker

COMPLY: The Marketing Compliance Podcast

Professional associations and organizations, such as the American Bankers Association (ABA), Society of Corporate Compliance and Ethics (SCCE), or the National Society of Compliance Professionals (NSCP)

PerformLine’s blog and content library for all things marketing and sales compliance

Conduct regular internal UDAAP compliance training programs for employees, which should include:

Review of the company's current UDAAP policy and guidelines for compliance

Highlight any updates from previous training session(s)

Recent UDAAP enforcement actions by regulators and the compliance takeaways from them

UDAAP best practices and resources to stay current on UDAAP compliance regulations

Create a UDAAP dos and don’ts list for marketing and advertisements

Provide examples of UDAAP compliance violations

Discuss prohibited content and actions, such as making misleading or false statements or using unapproved advertising materials

Emphasize the importance of transparency and the disclosure of important product disclosures, terms, and/or features on marketing materials

Enforcement + Remediation

Have a clear action plan for instances of non-compliance by an employee, partner, affiliate, or third party. This may include:

Notifying the individual of the violation and requiring them to remediate the issue according to the the company’s UDAAP policy and regulatory obligations

Removal or remediation of non-compliant content

Documenting instances of non-compliance and remediation

Determining appropriate disciplinary actions for individuals who repeatedly engage in non-compliant behavior

Monitoring + Auditing

A system in place to monitor for UDAAP compliance across the multiple marketing channels and platforms that individuals may be using, including (but not limited to):

Email marketing campaigns

Social media platforms (Facebook, Twitter, LinkedIn, etc.)

Paid search advertising (Google Ads, Bing Ads, etc.)

Display advertising (banner ads, pop-ups, etc.)

Direct mail campaigns

Messaging channels (SMS messages, chat boxes, push notifications, etc)

Affiliate marketing programs

Referral marketing program

Technology

Implement a compliance monitoring software or tool to help monitor ensure compliance with UDAAP that includes:

Automatic discovery and ongoing monitoring across marketing channels, third parties, and partners

OCR capabilities to review and score the text from within any image, such as on social media or advertisements

Ready-to-use and expertly-built UDAAP rulebooks designed to identify potential UDAAP violations to monitor content against

A centralized workflow that tracks activities across both internal departments and external partners, affiliates, or third parties

Detailed reporting and analytics for compliance and performance

Archived history from discovery through remediation for any audit situation

Opportunity for scale that makes it easy to add additional marketing channels for review, including the web, social media, calls, messages, emails, and documents

Mitigate UDAAP Risk with PerformLine

PerformLine is the only technology that provides an omni-channel compliance solution across six marketing channels, including the web, calls, emails, messages, documents, and social media.

This proprietary technology, paired with ready-to-use and expertly-crafted UDAAP rulebooks, takes the guesswork out of compliance and provides a solution that’s automated, efficient, and scalable.

The best part? It’s all customizable and tailored to fit your organization’s needs.

Request a demo

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