Helpful Resources for Understanding & Complying with UDAAP


According to the Consumer Financial Protection Bureau (CFPB), Unfair, Deceptive or Abusive Acts or Practices (known as UDAAP), can cause significant financial injury to consumers, erode consumer confidence and undermine fair competition in the financial marketplace.

UDAAP can often be difficult for compliance leaders to identify, understand or interpret due to its broad definitions, short history of interpretive case law and overlap with several consumer protection laws and regulations.

In that light, we’ve gathered together our top resources found to be the most helpful for continued learning on UDAAPs and how best to comply.

CFPB Examination Procedures - Unfair, Deceptive or Abusive Acts or Practices

The CFPB’s examination procedures provide general guidance on the principles of UDAAP, assessing your risk, how to identify UDAAPs and understanding its overlap with other consumer protection statutes.

CFPB Bulletin - Prohibition of Unfair, Deceptive or Abusive Acts or Practices in the Collection of Consumer Debts

A bulletin from the CFPB that clarifies the contours of the obligation to comply with UDAAP in the context of collecting consumer debts.

The Federal Trade Commission Act, Section 5: Unfair or Deceptive Acts or Practices

Section 5 of the Federal Trade Commission Act outlines the standards that will be considered by the agencies as they carry out their responsibility to enforce the prohibitions against UDAAP.

OCC's Comptroller's Handbook for UDAP and UDAAP

The OCC's recently updated booklet provides expanded procedures to assist examiners in evaluating UDAP and UDAAP risks and in assessing associated risk management.

CFPB Symposium - Abusive Acts or Practices

Watch the CFPB’s full symposium to learn different perspectives on how legal and policy experts define “abusive acts and practices” under UDAAP. Until recently, the meaning of “abusive” has been less clearly defined than the meaning of “unfair” and “deceptive”, both of which are outlined in Section 5 of the Federal Trade Commission Act (referenced above).

CFPB's Statement of Policy Regarding Prohibition on Abusive Acts or Practices 

As an extension of the above symposium, as of January 2020, the CFPB announced a new policy that outlines a common-sense framework on how the Bureau intends to apply the “abusiveness” standard in supervision and enforcement matters. Learn more about this policy and how to best comply here.

5 Best Practices For UDAAP Compliance Guide 

Download this guide to learn what every company should know to reduce exposure to Unfair, Deceptive or Abusive Acts and Practices (UDAAPs) and other common compliance violations.

UDAAP Enforcement Database

Check out this database from Davis Wright Tremaine LLP that compiles UDAAP enforcement actions by regulatory agencies that include allegations of unfair, deceptive or abusive acts or practices in connection with consumer financial products.

Unfair, Deceptive or Abusive Acts or Practices

Use this resource from the American Bankers Association as a quick reference for the basics of what UDAAP is, recent developments, articles, speeches and additional information.

Compliance In A UDAAP Risk Environment

Read this article to learn how a robust and effective Compliance Management System is a critical component of a well-run financial institution to help avoid UDAAP violations. Written by Goodwin associate Levi Swank and partner Tony Alexis (also former Head of Enforcements at the CFPB)

When the States Come Knockin': Doing Business in an Era of Increasing State AG Enforcement

This webinar from Venable LLP includes discussions around what UDAAP is, as well as a discussion on how it’s enforced differently from state to state.


Tags: Regulatory Compliance, UDAAP, CFPB, FTC