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NeighborBench Pubishes New UDAAP Risk Assessment

FREDERICK, MD (August 16, 2013) — In this era, when caveat emptor has taken a backseat to a broad array of rules covering all manner of practices that could be perceived as “unfair,” it is the prudent financial institution that periodically gauges its “UDAAP” preparedness.

As addressed by the Dodd-Frank Act, the “Unfair, Deceptive, or Abusive Acts or Practices” falls under the direction of the Consumer Financial Protection Bureau (CFBP), which issues regulations designed to enforce UDAAP protections.

While all financial institutions need to be aware of UDAAP’s requirements, it is clear that some have a greater magnitude of exposure to UDAAP than others. To help financial institutions gauge their UDAAP exposure, NeighborBench has developed the “UDAAP Risk Assessment” template. This 8-page fillable Word document walks financial institutions through 8 sections of potential vulnerabilities to UDAAP’s provisions, allowing them to score their performance under each area, then come up with some general conclusions as to where best to apply resources to most effectively manage their risk.

UDAAP is defined through the CFPB’s rulemaking authority and is enforced by the agency as well as existing regulators of financial institutions. It covers a wide range of products and services of today’s financial institutions, including loan and deposit products, marketing materials, disclosures, pricing notices, credit cards, fees of any kind, and a variety of information reporting and sharing.

NeighborBench’s “UDAAP Risk Assessment” is available at no charge by contacting NeighborBench’s Mike Lane at mike.lane@neighborbench.com or 1-888-972-3624, ext. 7015.

NeighborBench’s unique compliance solution combines the latest in automated tools with experienced professionals to help reduce the primary challenges of compliance: cost, time, resource requirements, and the disruptive nature of traditional consulting firm solutions. Learn more at www.neighborbench.com.

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