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The Federal Reserve published a final rule to repeal its Regulation AA Unfair or Deceptive Acts or Practices effective March 21, 2016.
An abusive act or practice: materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service, or takes unreasonable advantage of a lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service, the
Unfair Acts or Practices An act or practice is unfair when it (1) causes or is likely to cause substantial injury to consumers, (2) cannot be reasonably avoided by consumers, and (3) is not outweighed by countervailing benefits to consumers or to competition.
1. It causes or is likely to cause substantial injury to consumers; 2. The injury is not reasonably avoidable by consumers; and 3. The injury is not outweighed by countervailing benefits to consumers or to competition.
The prohibition against unfair and deceptive acts or practices (UDAPs) applies to all products and services offered by a financial institution, directly or indirectly.
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FDIC Consumer Compliance Examination Manual June 2022 The authority to issue credit practices rules under Section 5 of the FTC Act (e.g., Regulation AA, Credit Practices Rule) for banks, savings associations, and federal credit unions was repealed as a consequence of the Dodd-Frank Act.
Regulation AA (Unfair or Deceptive Acts or Practices) was a regulation created by the Federal Reserve to address practices by banks that consumers believed to be unfair. Regulation AA was created in 1985 and repealed in 2016.

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