Marketing and Advertising Compliance - The First UDAAP Hotspot

Why Should You Attend:

Regulation AA, the Unfair, Deceptive, and Abusive Act or Practices (UDAAP), has been a strong focus of the regulators since before 2012. This intense focus on ensuring advertising is fair and transparent continues today. Institutions must be ever mindful of even the smallest of advertising and the terminology used. The regulation is designed to ensure each consumer understands what is marketed and does not enter into a bait-and-switch program.

This webinar will discuss UDAAP and the pitfalls companies have to avoid. It will provide practical solutions to avoid those pitfalls. It will cover topics such as consumer deposit products in truth in savings, privacy implication, tax implications, fair lending when marketing lending products and much more.

Areas Covered in the Webinar:

• Defining the terms of unfair, deceptive, and abusive marketing
• Examples of those in print marketing, email marketing and social media
• How to avoid UDAAP in advertising
• Common mistakes
• Practical solutions for avoiding the pitfalls
• Role of monitoring for social media
• New Regulatory Focus: Increased attention to UDAAP
• Consumer deposit products in Truth in Savings
• Fair lending when marketing lending products
• Advertising over the internet and social media - different standards
• Privacy implications - sharing information under privacy regulations and FCRA
• Tax implications, and what not to say when talking about tax breaks
• Case studies

Who Will Benefit:

• Advertising/marketing departments
• Compliance / legal departments
• Fraud and risk departments
• Sales teams
• Internal audit departments

Kara Lamphere
Chief Compliance Officer and Director, Mid America Mortgage

Kara Lamphere, is a financial service professional with 16+ years of banking experience including 12+ years of compliance and auditing experience. She is highly skilled in compliance, quality control and audit management with extensive experience in team building, training and employee development.

Kara has a Bachelor’s Degree in Accounting and holds a Certified Internal Auditor license. Her experience has been predominately in financial services with a short stint in public accounting. She began her career as a teller and new accounts representative in college. Internal Audit and Compliance have been the focus of her career by serving as Chief Compliance Officer of a bank, Chief Compliance Officer of a mortgage lender, and VP-Compliance for a mortgage subsidiary which generated $1 billion monthly in mortgage loans. She has also served as a consultant and auditor for banks ranging from $100MM in assets to over $1B in assets.

Topic Background:

Advertising promotes products, services and a company’s brand, differentiating the company’s product from its competitors. While advertising is a terrific medium to solicit prospective clients and showcase products and services, it must be fair and equitable along with meeting various compliance requirements. What is included in the advertisement must be widely available to clients or be very clear on eligibility requirements. Advertising low rates or services may be a great tool to bring consumers in the doors; however, it can be costly when those rates and services do not pan out for that consumer. Offering discounts is a widely practiced advertising tool. When those discounts are only for niche products or consumers, it creates penalties both from consumer complaints and as a result of regulatory exams.

It is fundamental to have strong advertising to draw consumers to your brand, your product, your service. It is equally fundamental for the advertising to be honest, fair, and transparent. Most institutions are familiar with gimmick advertising in pamphlets and mailers. However, it is still quite prevalent among sales teams. Additionally, social media is fraught with gimmick sales tactic. While most corporations do not desire to advertise through gimmick tactics, it is often happening without their knowledge or consent. With or without knowledge, the company is still ultimately responsible. Creating a strong marketing guide and using practical tools, a company can accomplish both strong advertising and strong compliance.

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