In the United States of America, Unfair, Deceptive, Or Abusive Acts And Practices is a type of bank regulation issued under Federal Reserve Regulations. As the name suggests, UDAAP covers anything regarding unfair, deceptive or abusive acts in banking. Take this quiz about UDAAP to learn more about this act.
True
False
True
False
A material misrepresentation or omission of information that is likely to mislead a consumer.
An interference with the ability of a consumer to understand the term or condition that takes unreasonable advantage of the consumer’s lack of knowledge.
A substantial injury to a consumer that cannot be reasonably avoided and that is not outweighed by countervailing benefits to the consumer.
All of the above.
It causes or is likely to cause substantial injury to consumers
The injury is not reasonably avoidable by consumers
The injury is not outweighed by countervailing benefits to consumers or to competition
All of the above
The act of practice misleads or is likely to mislead the consumer
The consumer's interpretation is reasonable under the circumstance
The misleading act or practice is material
All of the above
True
False
True
False
A consumer's lack of understanding of the material risks, costs or condition of the product or service
A consumer's inability to protect his or her interests in selecting or using a consumer financial product or service
A consumer's reasonable reliance on a covered person to act in his or her interest
All of the above
True
False
True
False
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