what is udaap 
udaap is an acronym that refers to unfair deceptive or abusive acts or practices by those who offer financial products or services to consumers udaaps are illegal according to the dodd frank wall street reform and consumer protection act of 2010 the rules about udaaps were created by the consumer financial protection bureau cfpb enforcement is shared by the cfpb and the federal trade commission ftc understanding udaapdefining and outlawing udaaps were among the many steps that financial regulators took following the financial crisis it was during this time that financial regulators created new laws and regulations to protect consumers and boost consumer confidence in financial transactions the most notable piece of legislation was the dodd frank wall street reform and consumer protection act an unfair practice is one that harms consumers financially and that consumers cannot reasonably avoid the harm does not have to involve a large amount of money 1 under the law unfair practices do not benefit consumers or market competition which would make the potential for harm a valid trade off financial product and service providers are not allowed to the government does not determine which financial products and services are best for consumers but it does require that consumers have access to information that lets them choose the best options for their situations consumers should only have to take reasonable measures not impractical or expensive ones to determine whether purchasing certain financial products or services is in their best interests the law generally does not cover emotional harm except possibly in cases of excessive harassment the consumer financial protection bureau has a key role when it comes to udaaps dodd frank gives the agency the authority to make rules about these practices the act also includes the authority to enforce any actions that prevent the unfair deceptive or abusive acts or practices related to consumer offerings and transactions for financial products and services as long as the entity falls within the cfpb s jurisdiction 2the cfpb also grants enforcement authority to the federal trade commission just like the other agency the ftc ensures that financial products and service providers adhere to consumer protection laws by being truthful and ethical in their offerings and practices as such it is responsible for investigating complaints enforcing regulations and taking any action against entities that violate the law this includes issuing fines and penalties and even prosecuting offending service providers 34you can review the consumer financial protection bureau s definition of udaaps on its website if you feel that you ve been affected contact the cfpb or the ftc to file a complaint examples of udaapthe following are examples of unfair or deceptive practices regulators routinely evaluate financial products and services for potential sources of consumer harm the cfpb ordered three american express subsidiaries to refund about 85 million to around 250 000 customers in october 2012 the agency determined the subsidiaries harmed consumers in interactions ranging from advertising credit cards to accepting payments to collecting debts 5the bureau found that consumers were deceived about credit card rebates and about the benefits of paying off old debt the cfpb also found that some applicants were illegally treated differently based on their age among other charges 5