Mitigate UDAAP Compliance Risk
According to the Consumer Financial Protection Bureau (CFPB), unfair, deceptive, or abusive acts and practices (UDAAPs) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace. Under the Dodd-Frank Act, it is unlawful for any provider of consumer financial products or services or a service provider to engage in any unfair, deceptive, or abusive act or practice.
The CFPB and other regulators, such as the Federal Trade Commission (FTC), keep a close eye on financial institutions, fintechs, and other consumer finance companies, ensuring they protect consumers against UDAAP by monitoring their sales and marketing efforts.
Here are 8 steps every company should take to help reduce exposure to UDAAP and other compliance violations.