Effective Date: January 1, 2023
It is the policy of Axiom to comply with Section 1036 of the Dodd-Frank Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce,” and all published guidance by theConsumer Financial Protection Bureau (CFPB) regarding managing risks relating to unfair, deceptive, and abusive acts and practices (UDAAP), as applicable.
1. Defining Scope.
a. An act or practice is unfair where it:
i. Causes or is likely to cause substantial injury to consumers;
ii. Cannot be reasonably avoided by consumers; or
iii. Is not outweighed by countervailing benefits to consumers or to competition.
b. An act or practice is deceptive where:
i. A representation, omission, or practice misleads or is likely to mislead the consumer;
ii. A consumer’s interpretation of there presentation, omission, or practice is considered reasonable under the circumstances; or
iii. The misleading representation, omission, or practice is material.
1. The Federal Trade Commission’s test can assist in the evaluation of whether are presentation, omission, act, or practice is likely to mislead:
a. Is the statement prominent enough for the consumer to notice?
b. Is the information presented in an easy-to-understand format that does not contradict other information in the package and at a time when the consumer’s attention is not distracted elsewhere?
c. Is the placement of the information in a location where consumers can be expected to look or hear?
d. Finally, is the information in close proximity to the claim it qualifies?
c. A product or service is abusive if it:
i. Materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or
ii. Takes unreasonable advantage of:
1. Alack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service;
2. The inability of the consumer to protect the interests of the consumer in selecting or using a consumer financial product or service; or
3. The reasonable reliance by the consumer on a covered person to act in the interests of the consumer.
2. Compliance. Axiom has implemented the following internal controls designed to prevent unfair, deceptive, and abusive acts and practices with respect to its products and services.
a. Marketing. Axiom will:
i. Review Axiom’s promotional and marketing materials to ensure that they fairly and adequately describe the terms, benefits, and material limitations of the product or service being offered; and
ii. Ensure that these materials do not use inconspicuous disclosures designed to mislead or misrepresent the product or service being offered.
b. ProductAgreements. Axiom will:
i. Review Axiom’s product agreements to ensure that they fairly and adequately describe the terms, benefits, and material limitations of the product or service being offered;
ii. Design the text of the agreement to draw the attention of customers to key terms, including limitations and conditions;
iii. Disclose conditions for canceling a product or service;
iv. Not make claims, representations or statements that mislead customers about the cost, value, availability, cost savings, benefits, or terms of the product or service.
c. Employees.
i. Compliance. Axiom employees are required to comply with the provisions set forth in this Policy and all applicable federal, state and local laws, regulations, rules and orders.
ii. Social Media. Axiom employees are prohibited from creating and posting marketing materials on their personal social media platforms relating to Axiom’s products or services, except employees may repostAxiom approved marketing materials to their personal social media platforms.
iii. Reporting. Employees may provide written or verbal reporting of any actual or suspected violation of this Policy without fear of intimidation, retaliation or adverse consequences. A report may be made to the Legal Department or through Axiom’s third party reporting tool, EthicsPoint. Axiom will promptly investigate violations of this Policy.
d. Third Parties. Any third party that sells Axiom’s products and services, directly or indirectly, are required to:
i. Comply with all applicable federal, state and local laws, regulations, rules and orders including, without limitation, consumer protection laws and any other statute, regulation, rule, or law related to the sale of such products to consumers;
ii. Adhere to all product eligibility, guidelines, and restrictions established by Axiom from time to time;
iii. Only offer and issue product agreements on qualified assets;
iv. Not state or imply that a customer must purchase a product in order to purchase or finance an asset;
v. Monitor its contract and claims submissions to ensure that no fraudulent contracts or claims are submitted toAxiom; and
vi. Inspect the asset and correct any pre-existing damage or condition prior to the sale of any Axiom product or service.