O the ongoing trials and tribulations of UDAAP!
Sometimes knowing what violates UDAAP is difficult to discern; sometimes you know what it is when you see it; and sometimes you really should have known better!
The Federal Deposit Insurance Corporation recently announced settlements with Cross River Bank, Teaneck, New Jersey, and its institution-affiliated party, Freedom Financial Asset Management, LLC (FFAM), San Mateo, California. It seems that they got themselves into an unfair and deceptive practices violation of Section 5 of the Federal Trade Commission Act, the section that relates to the marketing and origination of Consolidation Plus Loans (C+ Loans). And, for good measure, the FDIC found the bank and FFAM violated the Truth in Lending Act (TILA) and Electronic Funds Transfer Act (EFTA).