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 Consumer Fraud and Deceptive Business Practices Act (CFDBPA), 815 Ill. Comp. Stat. 505/1 through 505/12, is Illinois’ state statute governing unfair and deceptive acts and practices used against consumers. This law covers a broad range of businesses such as debt collection, certain forms of advertising, or even car repair shops. Even if the defendant possessed good faith in their actions, a plaintiff can claim that they violated this Act by means of a trade of business’s misrepresentation or false promise. Similarly, it does not have to be proven that the defendant intended to deceive the plaintiff.
To bring a valid case under the CFDBPA in Illinois, the plaintiff should be able to prove four elements, which include: a deceptive act or practice by the defendant, the defendant intended the plaintiff to rely on the deception, the deception occurred in the course of conduct involving trade or commerce, and actual damages to the plaintiff proximately caused by the deception. Plaintiffs with a successful case can recover compensatory damages and punitive damages, depending on the nature of the CFDBPA violation. The plaintiff also may be awarded attorney’s fees in certain cases.
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.
Submit a Complaint filed by: Derrick3 months ago
Hello. My name is Derrick Seabaugh. I’m emailing you to file a complaint against Powerhome Solar. In March of 2020, my wife and I purchased a 27 panel Solar Edge system from Powerhome Solar for a 2450 square foot home. We financed the system through Technology Credit Union and our current payment is $280 a month. We were told by our salesman that our system would offset our monthly payment we were making to Ameren Illinois. Since the system has been installed, we are still paying Ameren a monthly payment usually $50-$175 depending on our usage. Now, we are paying $280 for our solar system in addition to the Ameren charges each month. Our system should be offsetting the Ameren payment, but that isn’t happening. Thanks.
Submit a Complaint filed by: Ricardo9 months ago
i used to had a restaurant business which infortunately it was ripped off of me by blackmailing and harrasment at the time i was going through a very dificult situation so i didnt wanted to fight over instead i went under recovery mode so i could star fresh however the collector dont and wont let me alone i let my business license expired which it was an LLC. Dos Ricco's LLC was the name of my company which the name still remains in some of my emails maybe is why debt collectors dont stop i already explained my licences was an LLC but they dont want to get it i feel like they not only harrasing me over the phone with fake numbers and emails but they have gone after my vehicle and my recent jobs since i dont want to pay they consistenly send me spams and fake texts to gain access to my personal info and accounts not sure what to do any more..??! thank you Sinceresly Ricardo
Submit a Complaint filed by: Nooraniabout 1 year ago
UDAAP violation. I am a branch banker at PNC Bank and I decided to get my mortgage through PNC as well. My MLO discussed with me that at the very highest, the total estimates for closing costs and 5% down would $8500. A week prior to closing, he said that it would be $13000. A $4500 difference. Because of his estimates, I spent $1300 on a home inspection, attorneys fees and appraisal fee. If I had known high estimates would be 13k, I would not have proceeded proceeded anything. He also told me to mention that my parents will be giving me a $5000 "gift" even though I told him that they aren't going to do that and he said that it's fine and that its only for income verification until the costs come down after all the credits. I feel deceived and lied to.