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Unfair, Deceptive or Abusive Acts and Practices authority has taken on a more significant role in  banking supervision in recent years.

Recent Developments 
The Basics 
Enforcement 
Commentary

Recent Developments

• Cordray Discusses CFPB Supervision of Payday Lenders, Debt Collectors and Credit Reporting Companies (12/5/12)
  In his remarks at a press conference with Mayor Rahm Emanuel in Chicago, CFPB Richard Cordray on December 5 discussed the importance of partnerships between state and local governments in protecting consumers against illegal business practices.
• CFPB Orders American Express to Pay $85 Million for Illegal Card Practices (10/1/12)
• CFPB and FDIC Order Discover to Pay $200 Million for Deceptive Marketing (9/24/12)
• OCC Enforcement Action against Issuer of Prepaid Cards (9/24/12)
• FDIC and CFPB Order Bank to Pay $200 Million for Deceptive Marketing (9/24/12)
• Higher One, Inc. of New Haven, Connecticut, and The Bancorp Bank of Wilmington, Delaware Reaches Settlement with FDIC for Charging Student Account Holders Multiple Nonsufficient Fund (NSF) Fees (8/8/12)
• ABA Compliance Library: UDAAP Policy Writing Guidelines - look under "Forms" (4/2012)
• New UDAAP Course Added to Frontline Compliance Training (April 2012)
• FTC Charges Payday Lender with Piling Inflated Fees on Borrowers (4/2/12)

The Basics

FTC Standards

• FTC Policy Statement on Unfairness
• FTC Policy Statement on Deception
  

Related Banking Regulations

• Regulation AA, UDAP Final Rule, Effective July 1, 2010 (2/22/10)
• Fed UDAP Final Rule, Effective February 22, 2010 (2/22/10)
  • Withdrawal Notice (2/22/10)
    The Board is withdrawing a final rule amending Regulation Z and the staff commentary to the regulation published on January 29, 2009.
• NCUA UDAP Final Rule and Withdrawal Notice, Effective July 1, 2010 (2/10/10)  
• Regulation AA Final Rule (1/29/09)
• Final Rule: Regulation Z on Mortgage Practices (under HOEPA Unfairness authority) (7/14/08)
  • Link to Summary  
• Fed Issues Proposed Rules to Reform Credit Card, Overdraft Practices (5/2/08)
  • ABA Asks for Reg DD Extension (5/27/08)
  • Board Denies ABA request on Reg DD Comment Extension Deadline (6/5/08)
• OTS Releases Outline of Proposed Rule on Credit Card, Overdraft Practices (5/1/08) 
• Fed Proposes Mortgage Practice Regulations (1/9/08)
• OTS UDAP ANPR (8/6/07)
  • ABA Comment on OTS UDAP ANPR (11/5/07) 
• Regulation AA
• OTS Credit Practices Rule
• OTS Advertising Rule
  

Banking Agency Policy Guidance

• CFPB Credit Add-on Product Guidance (7/18/12)
• FDIC Issues Revised Payment-Processor Guidance (1/31/12)
• CFPB Supervision and Examination Manual, October 2011 (See PDF Bookmark on UDAAP at p. 44)
• Fed Distributes UDAP Exam Procedures (CA Letter 07-08) Federal Reserve UDAP Exam Procedures
• OCC AL 2004-10 on Credit Card UDAP (9/14/04)
• OCC AL 2004-4 Secured Credit Card Practices (4/28/04) 
• FDIC FIL 57-2002 UDAP Enforcement Authority (5/30/02)
• FDIC FIL 26-2004 Managing UDAP Risks and Best Practices (3/11/04)
• FRB Managing UDAP Risks and Best Practices (3/11/04)
• OCC AL 2003-3 Predatory and Abusive Lending in Brokered and Purchased Loans (2/21/03)
• OCC AL 2003-2 Predatory and Abusive Lending Practices (2/21/03) 
• OCC AL 2002-3 Guidance on UDAP (3/22/02)

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• FDIC and OCC Announce Consent Orders re: Overdraft fees, Rewards Checking and Stop Payment Orders (4/30/13)
• OCC Enforcement Action against Issuer of Prepaid Cards (9/24/12)
• FDIC and CFPB Order Bank to Pay $200 Million for Deceptive Marketing (9/24/12)
• Higher One, Inc. of New Haven, Connecticut, and The Bancorp Bank of Wilmington, Delaware Reaches Settlement with FDIC for Charging Student Account Holders Multiple Nonsufficient Fund (NSF) Fees (8/8/12)
• Capital One Credit Card Add-on Case (Liability for Deceptive 3rd Party Marketing Practices (7/18/12)
• FTC Charges Payday Lender with Piling Inflated Fees on Borrowers (4/2/12)
• Asset Acceptance, LLC (FTC Case finding efforts to collect time-barred debt as unfair) (1/30/12) 
• OCC Settlement with Woodforest National Bank (10/8/10)
  • Consent Order for a Civil Money Penalty 
• FDIC Settlement with Monterey County Bank (10/5/10)
  • Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty
• FTC Case on Deceptive On-Line Marketing based on Web Page and Link Design (8/20/09)
• FDIC $114 Million Settlement with CompuCredit (12/19/08)
• FTC Sues Subprime Credit Card Marketing Company and Debt Collector for Deceptive Credit Card Marketing (6/10/08)
• FTC Subprime Lending Cases 
• Fairbanks Capital (FTC Subprime Mortgage Servicing Case) (Updated and Modified 8/2/07)
• Kmart Settles With FTC Over Deceptive Gift Card Practices (3/12/07)
• FTC Publishes Decisions Since 1969 On-Line (11/15/06)
• Court Order Shuts Door on Advance-Fee Credit Card Fraudsters (8/10/06)
• Integrated Credit Solutions Settlement 
  (FTC Press Release -- Deceptive Marketing of Credit Counselling Services) (5/3/06)
• Mortgages Para Hispanos 
  (FTC Press Release -- Alleged Deceptive Hispanic Mortgage Broker) (1/18/06) 
• OCC and Laredo National Agree to Strengthen Controls Against UDAP (11/4/05)  
• Mortgage Broker Barred From Making Deceptive Claims (3/28/05)
• FTC Pursues ACH Processor for Aiding Deceitful Telemarketer (11/3/04)        
• Ocwen Supervisory Agreement (Servicing Practices - OTS) (4/04)
• OCC Requires First Consumers National Bank to Refund Customer Fees (8/1/03)
• Clear Lake National Bank case (2003)
• Stewart Finance(Deceptive Loan Add-Ons - FTC) (10/03)
• OCC Concludes Case Against First National Bank in Brookings Involving Payday Lending, Unsafe Merchant (1/21/03)
• First National Bank of Marin (OCC Deceptive Credit Card Marketing Case) (2001)
• Providian to Cease Unfair Practices, (OCC Credit Card Fees Case) (6/28/00)
• DBC Financial (Misleading Bank Card Promotion - FTC Settlement) (2/00) and Complaint 

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• New UDAAP Course Added to Frontline Compliance Training (April 2012)
• ABA Asks for Reg DD Extension (5/27/08)
  • Board Denies ABA request on Reg DD Comment Extension Deadline (6/5/08)
• Recent FDIC Experience with UDAP Violations (12/18/08)
• ABA Comment on OTS UDAP ANPR (11/5/07) 
• FTC Testimony on Consumer Protection in Financial Services (6/13/07)
• Chairmen Frank and Dingell Urge Regulators to Improve Consumer Protection (5/11/07)
• ABA Bank Compliance article: Nothing In Life Is Free (7/05)
  A cover story on the compliance implications of marketing freebies.
• UDAP: Would You Recognize Them If You Saw Them? (05/05)
• Don't Sell Yourself Short: Protecting Your Bank from UDAP (01/03)
• On the Same Page: Federal Banking Agency Enforcement of the FTC Act to Address Unfair and Deceptive Practices by Banks, The Business Lawyer (5/03)
• The FTC's Use of Unfairness Authority

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