UDAAP – LIST OF VIOLATIONS

The emphasis on Unfair, Deceptive and Abusive Acts or Practices (UDAAP) is increasing. Violations are being cited with increasing frequency. The civil monetary penalties being imposed are substantial.

While all of the federal regulatory agencies focus on the issue, the most intense focus seems to come from the Federal Deposit Insurance Corporation (FDIC). While all of the FDIC’s regions appear to be focusing on the issue, the most intense focus appears to be coming from their Chicago Region. It seems that almost any violation can also be cited a UDAAP concern.

Bankers Service Corporation (BSC), a bank consulting and audit company located in Lexington, KY, is the middle of the hotbed of UDAAP violations. BSC has compiled and maintains a list of known UDAAP violations. Awareness of the problem is the first step in preventing the problem. Most bankers appear surprised by the length of the list and the variety of items on the list.

I encourage all bankers to get a copy of the list and to review all products and services for the presence of any of the identified practices. The list is available on the BSC website by clicking the following link:  BSC UDAAP List

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