The terms “UDAP” and “UDAAP” are perhaps the most significant ever to affect compliance. That sounds pretty bold, but consider that the CFPB was given an almost-unlimited mandate under Dodd-Frank to “take any action… to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.”
Although the UDAAP standard seems new, we’ve actually been familiar with “UDAP” (just one ‘A’) for quite some time. That extra ‘A’ (for ‘Abusive’) added a new standard, however, and the CFPB and the regulators have been active with criticisms and enforcement actions. UDAP/UDAAP has been applied in almost every setting, including commercial customers and transactions.
You must be familiar with what this new standard means for compliance and the risk management process. Technical compliance is no longer the only issue to be concerned about, as UDAP/UDAAP can found even though every technical compliance requirement may have been strictly followed.
What You’ll Learn
- UDAP vs. UDAAP: What did the introduction of “abusive” really do? Guidance and advice
- The reach of UDAP/UDAAP: It isn’t only a CFPB issue – it affects ALL institutions, regardless of regulator
- “Abusive” standards: How is this being enforced?
- Scope of UDAAP: Products, services, delivery channels, and methods
- Examples of practices, as well as high-risk products and services: Where should your focus be?
- The concept of “UDAAP Risk” – How to handle it?
- Possible expansion of the UDAAP concept: “Discrimination is UDAAP”
- Emphasis on sales and marketing practices, and product management
- Cultural change brought by UDAAP
- Areas where you wouldn’t even think to look
- Can treating a customer more favorably be unfair?
- How to prepare your UDAAP program
- What are the regulatory expectations? Evaluations, risk assessments, more?
- Going beyond the program: Managing the culture of your organization
Who Should Attend
UDAAP is an issue that affects most everyone in the financial institution, but in particular, compliance officers, auditors, management, counsel, marketing, sales, product development, business line management, and anyone else involved in any products, services, or practices that impact consumers will get valuable information from this webinar.
