Which of the following statements is true regarding UDAAP violations?

The statement that a violation of a consumer protection law can also result in a finding of a UDAAP violation is true because UDAAP, which stands for Unfair, Deceptive, or Abusive Acts or Practices, is a broad standard used to evaluate the conduct of financial institutions. The CFPB has the authority to identify practices that can be considered both a violation of specific consumer protection laws and a UDAAP violation. This means that even if a company has followed the rules set forth in a consumer protection law, if those same actions are deemed unfair, deceptive, or abusive, they may still face UDAAP enforcement.

Understanding this connection helps in recognizing that UDAAP violations can be assessed independently and in conjunction with other consumer law violations. Having a violation under existing laws highlights a potential UDAAP concern, but UDAAP stands alone as a broader principle for consumer protection. This helps to ensure that financial institutions are held accountable not only for adhering to specific regulations but also for their overall impact on consumers.