Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) Framework
Consumer protection compliance has become increasingly complex for US financial institutions, with regulators taking a more aggressive enforcement stance on practices that harm consumers. Cable now provides automated control testing for UDAAP requirements, helping institutions proactively identify and remediate potential consumer protection violations before they escalate into costly enforcement actions.
Key Features:
- Marketing and Disclosure Testing: Automated review of marketing materials, advertisements, and consumer disclosures to identify potential unfair, deceptive, or abusive practices before they reach consumers.
- Product Design Controls: Testing of product features, fee structures, and terms to ensure they do not cause substantial consumer injury that cannot be reasonably avoided.
- Consumer Complaint Analysis: Automated monitoring and analysis of consumer complaints to identify patterns that may indicate UDAAP violations or emerging consumer harm.
- Pricing and Fee Validation: Controls to verify that pricing structures, penalty fees, and account requirements are clearly disclosed and not designed to mislead or take unreasonable advantage of consumers.
This framework enables banks and fintechs to achieve continuous, automated UDAAP compliance testing, proactively identifying potential consumer protection issues before they result in regulatory enforcement actions.