OCC publishes new exam guide booklet on UDAAP, rescinds previous OTS publications

A new booklet on unfair or deceptive acts or practices (UDAP) and unfair, deceptive, or abusive acts or practices (UDAAP) was published by the federal regulator of national banks and federal savings associations Monday.

The new booklet, announced in a bulletin (2020-65), is included in the compliance series of the Comptroller’s Handbook published by the Office of the Comptroller of the Currency (OCC).

The booklet:

  • reflects the OCC’s risk-based supervision approach and is consistent with the OCC’s existing principles for assessing banks’ compliance management systems as they relate to UDAP and UDAAP.
  • is consistent with OCC Advisory Letter 2002-3, “Guidance on Unfair or Deceptive Acts or Practices.”
  • includes examination procedures for examiners to assess the effectiveness of a bank’s compliance management systems in managing UDAP and UDAAP risks.
  • provides UDAP and UDAAP red flags and risk indicators that can be used to help identify acts or practices that may raise UDAP or UDAAP concerns.
  • reinforces the OCC’s continued commitment to banks’ compliance with section 5 of the Federal Trade Commission Act and sections 1031 and 1036 of the Dodd–Frank Wall Street Reform and Consumer Protection Act.

The comptroller’s office also rescinded the former Office of Thrift Supervision’s (OTS) Examination Handbook, section 1354, “Unfair or Deceptive Acts or Practices, Federal Trade Commission Act, Section 5”; and section 1355, “Unfair or Deceptive Acts or Practices – Credit Practices Rule.”

OCC Bulletin 2020-65

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