Technical compliance does not always protect against an allegation of a UDAAP violation. Unfortunately, penalties for violating the UDAAP provision can be drastic - up to $1 million per day for a knowing violation of the law. And language of the UDAAP provision is broad and vague.
The Truth in Savings Act (TISA) was passed to enable consumers to make informed decisions about accounts at depository institutions. This law requires banks to provide disclosures so that consumers can make meaningful comparisons among depository institutions.
This session will assist with detecting and avoiding potential UDAAP-related violations as related to consumer deposit account activity. We will identify acts or practices that increase the risk of UDAAP-related violations of TISA.
This session covers the rules applicable to:
- Initial and subsequent disclosures - Content vs. Actual Practices
- Advertising - Matching to Disclosures and Actual Practice
- Hyperbole - Superlatives can be a trap
- Reward Programs and Add-ons - Identity Theft Protection, Insurance, etc.
- Overdraft Programs (ODP)
- Debit posting method
- Board and Management Oversight
- Formal Compliance Program
- Response to Consumer Complaints
- Compliance Audit
UDAAP & Truth in Savings: 10 Common Errors
Questions and Answers