UDAAP Council Weekly UDAAP Standards Report - 4/1/2015

Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims. In an effort to illuminate the UDAAP standards, below is a sampling of some of this week's UDAAP decisions on the meaning of unfair, deceptive, and abusive.

Unfair

• A borrower alleged that a mortgage servicing company (the "servicer") violated the California Unfair Competition Law ("CUCL") when it added inspection fees to the borrower's statement based on inspections it ordered for a defaulting borrower's property. However, the court dismissed the borrower's claims because the borrower's mortgage agreement allowed the servicer to take steps to protect the property and to charge the borrower for the steps taken (even though the borrower alleged that the agreement required the servicer only to take "necessary" steps to preserve the property). The court also dismissed the complaint because there was no wrongdoing in a servicer automatically ordering inspections.