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Unfair, Deceptive or Abusive Acts and Practices

Section 5 of the Federal Trade Commission Act (FTC Act), 15 USC 45(a)(1) (UDAP), prohibits "unfair or deceptive acts or practices in or affecting commerce." The Dodd-Frank Act makes it unlawful to engage in any unfair, deceptive or abusive act or practice (UDAAP with two As). The responsibility for enforcing the prohibition against "abusive" acts or practices was given to the Consumer Financial Protection Bureau (CFPB) under Dodd-Frank, but the prudential regulators retain their authority to enforce UDAP under Section 5 of the FTC Act. To date, the CFPB has not issued any rules under its UDAAP authority.


 Recent Developments


 The Basics



Note: The Federal Trade Commission exercises UDAP authority against persons, partnerships, or corporations. The prudential regulators enforce UDAP against banks, savings and loan institutions or Federal credit unions.



Exam Procedures








Questions? For more information, contact Rick Freer.