CFPB Test

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CFPB

CFPB Test - You must score 85% or higher.

Which of the following is not a law that we are subject to?

  • ECOA
  • JAVA
  • GLBA
  • TILA

Additional consumer risks have been identified. During the course of interaction with a customer, we must avoid acts or practices that are ________, _________, or ___________.

  • Unfriendly, deceptive, or abusive
  • Unfair, deceptive, or Expensive
  • Unfair, deceptive, or abusive
  • Unfair, defective, or abusive

Which statements would not comply with ECOA’s restriction against discrimination on advertising?

  • A poster in your window that says, “Need money for summer vacation? Come on in for some fast cash!”
  • “Hey Single Ladies! Come on down to FastBucks for your loan, today!
  • During a telephone call, you ask: “Hey, are you still on public assistance? Let’s wait until you get back on your feet to apply for another loan."
  • “If you’re retired, don’t bother coming in to FastBucks. We aren’t for you."
Select all that apply

Which of the following categories fall under ECOA’s prohibited designations to determine creditworthiness?

  • Marital Status
  • Religion
  • Income
  • Education Level
  • Race
  • Origin
  • Age
  • Fitness Level
  • Sex
  • Height

During an examination, the CFPB review does not include which of the following areas?

  • Advertising
  • Collections
  • Application and origin of loans
  • Employee Benefits

The FastBucks contract requires that payments be made via EFT.

  • True
  • False

A representation, omission, act or practice is deceptive when:

  • It misleads a consumer.
  • The consumer's interpretation of the representation, omission, act or practice is reasonable under the circumstances.
  • The representation, omission, act or practice is material.
  • All of the above
(Remember the prongs of deception?)

An act or practice is abusive when:

  • It materially affects the consumer’s ability to understand a term of the loan.
  • It takes unreasonable advantage of a lack of understanding on the part of the consumer of the material risks, costs or conditions of the loan
  • The consumer doesn’t take the loan.
  • It takes unreasonable advantage of the inability of the consumer to protect its interests in selecting or using a financial product or service.
Select all that apply

Which of the following are “Trigger Terms”?

  • Amount of payment (in percentage or dollar amount)
  • The Amount of Any Finance Charge
  • "Financing Available"
  • Number of payments or the period of repayment
Select all that apply

What does CFPB stand for?

  • Consumer Finance Protection Bureau
  • Consumer Financial Protection Branch
  • Customer Financial Protection Bureau
  • Consumer Financial Protection Bureau

FastBucks collection practices include the following:

  • Repeatedly calling the borrower to harass them to into repaying the loan.
  • Clearly disclosing to customers that they are calling to discuss the collection of a debt.
  • Telling the public about the borrower’s loan.

What does EFTA stand for?

  • Electric Funds Transfer Act
  • Electronic Friends Transfer Act
  • Electronic Fraud Transfer Act
  • Electronic Funds Transfer Act

Disclosures are necessary if a “triggering term” is used.

  • True
  • False

Which of the following things does CFPB not do?

  • Monitor financial markets for new risks to consumers
  • Promote financial education
  • Enforce laws that outlaw discrimination and other unfair treatment in consumer finance
  • Research consumer behavior
  • Monitor employee wages

The CFPB may schedule an examination of FastBucks locations. Which documents are not reviewed during an examination?

  • Advertisements, marketing research, and website information
  • Loan applications, loan account documentation, telephone recordings
  • FastBucks' employee records
  • Training programs and materials

Advertising should not contain ___________ terms; but if it does, you must also include ___________.

  • Discount/Coupons
  • Trigger Terms/Disclosures
  • Company Names/Locations
  • Pictures/Music

During an examination, the CFPB an examiner may interview employees to determine if they understand and consistently:

  • Clock in at the correct time
  • Follow policies, procedures and regulatory requirements applicable to lending;
  • Manage change in policies, procedures, and regulatory requirements appropriately;
  • Implement effective controls to ensure compliance with policies, procedures and regulatory requirements
(Choose all that apply)

What does TILA stand for?

  • Trust in Lending Act
  • Truth In Law Act
  • Truth in Lending Association
  • Truth in Lending Act

What does ECOA stand for?

  • Equal Credit Opposition Act
  • Excellent Cash Opportunity Act
  • Equal Credit Opportunity Act
  • Equal Cash Opportunity Act

Advertising must comply with federal consumer laws and regulations. This includes advertising materials and disclosures across all media, including:

  • Radio
  • Internet, Email, Text Messages
  • Television
  • Telephone Solicitation Scripts
  • Print
Select all that apply

FastBucks contract includes disclosure of privacy rights.

  • True
  • False

What does GLBA stand for?

  • Gramm-Lynch-Bailey Act
  • Gramm-Lynch-Bliley Act
  • Gramm-Leach-Bailey Act
  • Gramm-Leach-Bliley Act

The FastBucks contract includes the following Disclosure Requirements:

  • Payment Schedule
  • Prepayment
  • Social Security Number
  • Finance Charge
  • Amount Financed
  • Total of Payments
  • Creditor
  • Security Interest
  • APR
Select all that apply

A representation, omission, act or practice is unfair when:

  • The injury is not reasonably avoidable by consumers
  • The injury is not outweighed by countervailing benefits to consumers or competition.
  • It causes substantial injury to the consumer.
  • The consumer decides not to take the loan because of a loan condition.
Select all that apply

FastBucks is only subject to ECOA/REG B if a customer takes a loan.

  • True
  • False