Description
20min | Credits: 0.5 CFMP
This course describes the elements of unfair, deceptive, or abusive acts and practices (UDAAP) under federal laws. Explains how to promote compliance and best practices to avoid UDAAP claims. Also covers the Credit Practices Rule that prohibits certain practices and requires disclosures that must be provided to loan co-signers. (UDAAP advertising matters are covered in the ABA Frontline Compliance course UDAAP for Marketers.)
Please NOTE: This course uses the term “UDAAP” (instead of UDAP) throughout the course in order to proactively address the new “abusive” standard under the CFPB’s Title X. Most bank regulators, however, are still examining banks under the old UDAP provisions of Section 5 of the FTC Act—the primary federal law that prohibits unfair or deceptive acts or practices and unfair methods of competition affecting commerce.
Audience: All employees with direct customer contact. Employees managing business lines or designing policies/procedures.
Learning Objectives
After completing this course, students will be able to:
- Describe the federal laws covering UDAAP
- Recognize the elements of unfair, deceptive, and abusive acts or practices
- Identify how to promote compliance and best practices to avoid UDAAP claims
- Explain the Credit Practices Rule and the cosigner rules
This course is part of the ABA Frontline Compliance program.