Banking

FCRA

FCRA stands for the Fair Credit Reporting Act.

• The FCRA is a law in the US that controls how credit information about consumers is collected, used, and shared.
• It makes sure that credit bureaus keep accurate and private consumer credit files.
• The FCRA gives consumers the right to access their credit reports, correct errors, and be informed about decisions made based on their credit information.

UDAAP

“Unfair, Deceptive, or Abusive Acts or Practices” (UDAAP) is a regulatory concept that aims to protect consumers from unethical and harmful actions.

“Unfair”

• cause significant harm to consumers,
• are not outweighed by any benefits,
• and are not reasonably avoidable by consumers themselves.

“Deceptive”

• actions that mislead or trick consumers
• through false or misleading statements, omissions, or representations.

“Abusive”

• actions that take advantage of a consumer’s lack of understanding, knowledge, or ability to protect their own interests,
• and result in significant harm

Examples of UDAAP violations include

• fraudulent advertising,
• predatory lending practices,
• unauthorized charges, hidden fees,

These practices are regulated by government agencies, such as the Consumer Financial Protection Bureau (CFPB) in the United States.