Webcast shows CUs how to mitigate UDAAP risk
Oct. 31, 2013 – Credit unions learned about compliance with rules against unfair, deceptive or abusive acts or practices during a NAFCU webcast yesterday featuring Jane Pannier, former president and CEO of REALTORS FCU and current senior vice president and counsel for NeighborBench LLC.
The UDAAP provisions apply to commerce in general and consumer credit practices in particular. They have become an area of ever-increasing focus for federal regulatory agencies, including the CFPB, and apply to all credit unions.
Pannier gave participants examples of UDAAP enforcement actions – including some affecting Discover and Capital One, and which cost the companies millions of dollars in refunds to consumers. She also discussed the most common UDAAP trends and risk areas. For example, she said some of the highest-risk areas are in overdraft programs, loans with balloon payments, ATM fees, gift card sales and credit card programs.
At the conclusion of the webcast, Pannier asked credit union participants some questions to consider that may affect UDAAP risk. “Does the credit union’s business or marketing plan target less financially savvy members, or do you have a significant percentage of elderly, students or military individuals in your field of membership?” she asked. “Are you at the forefront of developing new and non-traditional products and services?”
NAFCU’s webcasts are available on demand for 12 months after they are broadcast and are included in the registration fee.
NAFCU UDAAP webcast