Regulatory Compliance & Ethics Flashcards

Under the Fair Credit Reporting Act, how long can most negative items, such as charged-off accounts, generally stay on a consumer's credit report?

Answer: 7 years

Most negative information can be reported for seven years under the FCRA, while some bankruptcies can stay for ten.

Under the CFPB's Regulation F, a debt collector is presumed to violate the call-frequency limits if it calls about a debt more than how many times within seven days?

Answer: 7 times

Regulation F presumes a violation if a collector calls more than seven times in seven days about one debt.

A client's old debt may be past the statute of limitations. Why should an agent be careful about recommending a payment on it without proper guidance?

Answer: In some states a payment or written acknowledgment can restart the statute of limitations

In many states a partial payment or written acknowledgment can revive or restart the limitations period on time-barred debt.

Which law requires a credit repair organization to give a written contract with a 3-business-day cancellation right and bans charging before services are performed?

Answer: The Credit Repair Organizations Act

CROA bans advance payment for credit repair and requires written contracts with a three-day right to cancel.

Which federal law requires financial service providers, including many debt relief companies, to protect consumers' nonpublic personal information and give privacy notices?

Answer: The Gramm-Leach-Bliley Act

The GLBA Privacy Rule and Safeguards Rule require privacy notices and safeguards for nonpublic personal information.

The Dodd-Frank Act lets the CFPB act against covered persons for which category of conduct?

Answer: Unfair, deceptive, or abusive acts or practices (UDAAP)

Dodd-Frank gives the CFPB authority over unfair, deceptive, or abusive acts or practices in consumer financial services.

A debt relief company is based in one state but enrolls consumers nationwide. What is its main state-level compliance duty?

Answer: It must follow the licensing, registration, and fee-cap laws of each state where its consumers live

Many states have their own licensing, bonding, and fee rules for debt relief, and they apply based on where the consumer lives.