• The abbreviation UDAAP refers to dishonest, misleading or abusive acts or actions of those who offer financial products or services to consumers.

  • Since the financial crisis, regulators have passed new laws to protect consumers, including the definition and removal of UDAAP.
  • Providers of financial products and services may not coerce or deceive consumers into making unwanted purchases, and are prohibited from making misleading consumer claims about products and services.
  • The Consumer Financial Protection Bureau has the authority to regulate UDAAP, while the agency shares enforcement duties with the Federal Trade Commission.
  • Regulators regularly assess financial products and services for harm from consumption.