This is the CFPB Test
CFPB Power Point Link - Review
CFPB Test - You must score 85% or higher.
Which of the following is not a law that we are subject to?
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."
Which of the following categories fall under ECOA’s prohibited designations to determine creditworthiness?
- Marital Status
- Education Level
- Fitness Level
During an examination, the CFPB review does not include which of the following areas?
- Application and origin of loans
- Employee Benefits
The FastBucks contract requires that payments be made via EFT.
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.
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
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.
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 ___________.
- Trigger Terms/Disclosures
- Company Names/Locations
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:
- Internet, Email, Text Messages
- Telephone Solicitation Scripts
FastBucks contract includes disclosure of privacy rights.
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
- Social Security Number
- Finance Charge
- Amount Financed
- Total of Payments
- Security Interest
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.
FastBucks is only subject to ECOA/REG B if a customer takes a loan.