Understanding UDAAPs

What is an unfair, deceptive, or abusive act or practice?

7/1/2019 11:00 AM

CFPBNewsCollector Magazine
Understanding UDAAPs

The accounts receivable management industry is awash with an alphabet soup of confusing—but very important—acronyms you must be mindful of in your daily work. The Dodd-Frank Wall Street Reform and Consumer Protection Act granted the Consumer Financial Protection Bureau the ability to identify and prohibit unfair, deceptive or abusive acts and practices (UDAAPs).

While the CFPB doesn’t publish a specific list of actions that fall into these “unfair, deceptive or abusive” categories, we do have some examples of conduct the bureau has found to be a violation. Your agency should have policies and procedures in place to prevent these actions, but it’s still helpful to review them.

Read Understanding UDAAPs in Collector magazine for examples of practices to avoid.

Many of these unfair, deceptive or abusive actions are of course already prohibited under the Fair Debt Collection Practices Act, which means that agencies can be liable under both acts for violations. All the more reason to stick to your agency’s policies and procedures and follow any scripts you are provided.

The CFPB is also reviewing policy development on UDAAPs and whether it should further define “abusive acts or practices” after a panel discussion June 25.

Subscriptions to the Collector magazine digital edition and email notifications for each new issue are available for ACA International members by logging in to ACA International’s website here. Members and nonmembers can also purchase a print subscription. Nonmembers can create a guest profile on ACA’s website to subscribe to available publications.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Understanding UDAAPs

The accounts receivable management industry is awash with an alphabet soup of confusing—but very important—acronyms you must be mindful of in your daily work. The Dodd-Frank Wall Street Reform and Consumer Protection Act granted the Consumer Financial Protection Bureau the ability to identify and prohibit unfair, deceptive or abusive acts and practices (UDAAPs).

While the CFPB doesn’t publish a specific list of actions that fall into these “unfair, deceptive or abusive” categories, we do have some examples of conduct the bureau has found to be a violation. Your agency should have policies and procedures in place to prevent these actions, but it’s still helpful to review them.

Read Understanding UDAAPs in Collector magazine for examples of practices to avoid.

Many of these unfair, deceptive or abusive actions are of course already prohibited under the Fair Debt Collection Practices Act, which means that agencies can be liable under both acts for violations. All the more reason to stick to your agency’s policies and procedures and follow any scripts you are provided.

The CFPB is also reviewing policy development on UDAAPs and whether it should further define “abusive acts or practices” after a panel discussion June 25.

Subscriptions to the Collector magazine digital edition and email notifications for each new issue are available for ACA International members by logging in to ACA International’s website here. Members and nonmembers can also purchase a print subscription. Nonmembers can create a guest profile on ACA’s website to subscribe to available publications.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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