Are you looking for a deeper overview of the scope of the CFPB? Are you unsure of what defines UDAAPs? Do you want to learn more about CFPB guidance, expectations, and enforcement trends? In this webinar, speakers Tomio Narita, partner with the California law firm, Simmonds & Narita, and Jessie Skibbe, Chief Compliance Officer with KirkpatrickPrice, will answer these questions and more!
What are UDAAPs?
According to the CFPB, under the Dodd-Frank Act, “all covered persons or service providers are legally required to refrain from committing unfair, deceptive, or abusive acts or practices (collectively, UDAAPs) in violation of the Act.” When collecting consumer debts, UDAAPs have detrimental implications, such as:
- Significant financial injury to consumers
- Eroding consumer confidence
- Undermining fair competition in the financial marketplace
What Defines UDAAPs?
UDAAPs can be defined as…
- Unfair: An act or practice is unfair when: (1) It causes or is likely to cause substantial injury to consumers; (2) The injury is not reasonably avoidable by consumers; and (3) The injury is not outweighed by countervailing benefits to consumers or to competition.
- Deceptive: An act or practice is deceptive when: (1) The act or practice misleads or is likely to mislead the consumer; (2) The consumer’s interpretation is reasonable under the circumstances; and (3) The misleading act or practice is material.
- Abusive: An act or practice is abusive when it: (1) Materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or (2) Takes unreasonable advantage of – (A) a consumer’s lack of understanding of the material risks, costs, or conditions of the product or service; (B) a consumer’s inability to protect his or her interests in selecting or using a consumer financial product or service; or (C) a consumer’s reasonable reliance on a covered person to act in his or her interests.
To learn more about UDAAPs, download the full webinar. For more information about how KirkpatrickPrice can assist you in meeting your compliance objectives, contact us today.