Skip to content

UDAAP penalties are costly

Answered by: 

How much "teeth" does UDAAP really have to penalize a bank

In one enforcement case, the bank's third party vendor processed unauthorized remotely created checks. Because the bank should have recognized the fraud and it failed to act, the bank was hit with a UDAP action. In addition to other penalties there was restitution ordered of $125 million. Other cases involve credit cards and a $6 million restitution and reserve settlement, another was $4 million. The list goes on.

The key is to not start down the path toward a systemic problem that can trigger these types of actions.


Learn more about Andy Zavoina’s Understanding UDAAP/UDAP and Complaints webinar.

First published on 04/11/2021

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics