General Overview

UDAAP is an acronym representing laws that prohibit Unfair, Deceptive, or Abusive Acts or Practices in the context of trade or business. This includes misrepresentation, deception, false advertising, or false promises. These laws emerged following the Dodd-Frank Wall Street Reform and Consumer Protection Act that was enacted in response to the 2008 financial crisis. The ultimate goal with these laws is geared towards protecting consumers involved in financial transactions, educating consumers on their rights, and allowing them access to information and resources to best inform their decisions.

The organizations which regulate and enforce UDAAP laws are the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC). The FTC expanded the initial UDAAP laws in 2004 to include unfair and deceptive acts and practices. Some standards for unfairness, in particular, include if it causes or is likely to cause substantial injury to consumers, the injury is not reasonably avoidable by consumers, and the injury is not outweighed by countervailing benefits to consumers or to competition.


The Deceptive Trade Practices Act, Ark. Code Ann. Sections 4-88-101 through 4-88-207, is Arkansas’s UDAP statute broad in its scope which prohibits “deceptive and unconscionable trade practices” in merchant-consumer transactions. Violations of this law may include selling products that have been tampered with, bait-and-switch marketing, taking advantage of a consumer in a transaction, and more. The attorney general will bring the claim forth for the consumer.

To bring forth a lawsuit under this act, the plaintiff must be able to prove its elements, which include: a deceptive consumer-oriented act or practice which is misleading in a material respect, and injury resulting from such an act. Successful plaintiffs can recover compensatory damages and attorneys fees, as well as a civil penalty for initial violations.

UDAAP and Arbitration

Arbitration is an out-of-court proceeding where a neutral third-party (the arbitrator) hears all the evidence from both sides and makes a decision about the case, which may or may not be binding. Binding arbitration, the most common type of arbitration, means that the decision is enforceable in a court of law and participants agree to abide by the decision. Some contracts allow for non-binding arbitration, meaning that either party is free to reject the arbitrator’s decision and take the dispute to court, although this is less common.

Arbitration has many advantages over traditional litigation, including being faster, more flexible in scheduling, and more efficient. Arbitration also avoids the hostility that can accompany court cases, remains confidential, and allows for an arbitrator who is a professional in the field to be selected instead of a judge who may not have familiarity with the issues at hand. 

If you have a UDAAP claim, chances are we can bring your claim in arbitration.  Arbitration is a very useful tool for resolving disputes, and Agruss Law Firm, LLC can help. With our expert guidance, we bring the big companies to the table and provide the support needed to get your bills corrected, credit reports fixed, improper fees refunded, and more. Let us pick up the sword for you; you have nothing to lose.

We see you as a person, not just a client – and that makes us better at the work we do. We listen. We learn your story. And, as we help you get the money you deserve, we go above and beyond in a way most law firms never could and never would.  Our unique formula has earned us over 1,070 outstanding client reviews on our website, an A+ BBB rating, and over 155 five-star reviews on Google. Call 888-572-0176, e-mail us at [email protected], or schedule a meeting with us here. We’re here 24/7.

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Submitted Complaints

I purchased a vehicle as a new vehicle and several months later, I found a rental agreement under the seat. I called the dealership to ask about it and was told my vehicle had been in the General Motor Courtesy Transportation Program before I purchased the car but was not told this at this time of purchase. I would have never purchased a program car. Also, I paid the full MSRP as if this were a new vehicle, which I also would not have done had I know I was buying a program car. I have suffered an actual financial loss of over $10,000 and I want the contract rescinded. The statute of limitations is up October 2022 so time is of the essence. This car has sat in my driveway (not driven) for over 3 years while I have been trying to fight this on my own.

Michael Agruss Headshot

Hi Robin. An auto dealer has an obligation to tell you if the car you are purchasing was previously used as a vehicle for rentals or courtesy transportation. While the obligation may be there, many car dealers still don’t this to consumers. You may have a claim against the dealership and I would be happy to speak with you about this in more detail. I will contact you, however feel free to call me at 888 572 0176 at a time that is more convenient for you. Thanks, Mike

We contacted a pawnshop in Feb 2020 via its website about a loan against pending income tax refund and c were contacted by phone to confirm the loan could be secured. Upon arrival at the business, the owner stated that his attorney had informed him that he would not be able to charge the $500 loan fee that we were given on the phone, and asked if we had any property to use as collateral to secure the loan. In the end, we drove off his lot with a 2006 SUV and $500 cash (total repayment cost of $625) with the understanding that we bring in the title to our 2000 Durango the next day, pay off the 2006 SUV when our refund arrived, which we did. When our taxes arrived and we paid off the 2006 SUV he informed us that since we had paid it with a debit card it would take additional time to release the 2006 title. The interest payment of $125 was paid on the 2000 title and the loan was extended another 30 days. After making 1 other interest payment we attempted to pay the $625 listed on our paperwork to get the durango title back only to be told we now owed right at $1000. He refused to accept the $625 we had on hand to pay down the principal or extend the loan. In July his mechanic went to the address listed on our paperwork (we had since moved) and I helped the man and his son get to where we had the durango stored and helped them loan it onto the trailer. Roughly 2 months later we recieved notice in the mail that we were liabke for storage/recovery fees of more than $1200 and would be sued if not paid. Ive since learned that this particular broker was charged by the AG for violations of the DTPA and ordered to pay restitution/return titles in 2017, and would be liable to $50,000 fine if found to be in violation again. Is there anything I can do without a massive amount of money upfront, or has a statute changed since the 2017 order that allows him to do this? Our paperwork clearly says the $500 loans apr was 304%.

Michael Agruss Headshot

Hi Emily. You can send over the paperwork you have from the pawn shop to me at [email protected] I can look it over and then give you a call to discuss this situation in more detail. Thanks, Mike