5 best practices for adhering to UDAAP regulations

Are you 100% sure that your employees have the necessary compliance and regulatory training in order to mitigate the risk of fines and to protect your financial institution and its borrowers?

Congress has several laws in place to oversee financial institutions—protecting them against illegal activities such as money laundering and protecting consumers from unfair financial practices.

There are various regulatory bodies that oversee these laws and work to ensure there are no violations. However, if a regulatory body determines a financial institution and/or its employee(s) has violated these laws, whether knowingly or unknowingly, they can potentially be fined for each violation. These violations come with hefty price tags—sometimes in the millions of dollars.

As part of our ongoing compliance blog series, we’ll outline one of the most important sets of compliance regulations financial institutions must adhere to—Unfair, Deceptive, or Abusive Acts (UDAAP)—and give you tips for ensuring all your employees have proper training on and clearly understand the regulatory policies that are designed to protect your institution and its borrowers.

 

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