Many companies compare the task of staying compliant with the Dodd-Frank Act’s regulations prohibiting the use of unfair, deceptive or abusive acts or practices (UDAAP) with trying to hit a moving target.
In the webinar “Decoding UDAAP,” by October Research, LLC, compliance attorneys Richard Andeano, Jr. of Ballard Spahr and Michael Kieval of Weiner Brodsky Kidner shared their extensive knowledge of UDAAP and the Consumer Financial Protection Bureau’s (CFPB) authority to levy enforcement actions against companies engaging in activities it believes to be unfair, deceptive or abusive.
This webinar is available for purchase at www.octoberstore.com/Decoding_UDAAP_Webinar_p/orw121416.htm.
The two speakers covered a range of topics including how to define what is meant by the terms “unfair,” “deceptive” and “abusive” as they relate to UDAAP and how to identify what activities constitute potential violations. Those definitions are not easily summarized, according to Andreano and Kieval, as there is a great deal of ambiguity surrounding each term. That is where their expertise comes into play.
The attorneys offered context for several recent enforcement actions and explain how companies can ensure that their compliance management systems are sufficient to prevent them from running afoul of UDAAP, a mistake which numerous companies have found to be quite costly from both a monetary and reputational standpoint.
The speakers highlighted bulletins the CFPB has put forth that offer some guidance for companies to avoid to stay UDAAP compliant. By their assessments, the bulletins serve more to draw attention to what actions the bureau is taking against UDAAP violators rather than informing companies how to steer clear of making the same mistakes.
UDAAP is intended to fill in areas other laws do not cover, according to Andreano. This is important to note when considering the importance of educating oneself of its idiosyncrasies. The fact that an act or practice is in compliance with one law does not necessarily mean that it complies with UDAAP.
At the end of the webinar, the speakers answered questions submitted by the audience, offering candid responses that succinctly explained how UDAAP regulations could apply to specific scenarios of interest.