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Compliance and Regulatory Standards Flashcards

7 cards from real CAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Compliance and Regulatory Standards flashcards as text

  1. When a creditor takes adverse action based in whole or in part on a consumer report, FCRA requires the notice to include which of these?

    Answer: The name and contact information of the consumer reporting agency

    FCRA adverse action notices must identify the CRA, state that the CRA did not make the decision, and explain the right to a free report and to dispute.

  2. Under ECOA/Regulation B, an adverse action notice must either give the specific principal reasons or do what?

    Answer: Tell the applicant of their right to request the reasons within 60 days

    Creditors may disclose the reasons or tell the applicant they can request them within 60 days.

  3. The Risk-Based Pricing Rule under FCRA is triggered when a creditor does what?

    Answer: Offers credit on terms materially less favorable than those offered to most consumers, based on a consumer report

    A risk-based pricing notice or credit score disclosure is required when consumer report information leads to materially less favorable terms.

  4. Under UCC Article 9, a secured creditor may repossess collateral without judicial process as long as it does not do what?

    Answer: Breach the peace

    Self-help repossession is allowed under UCC § 9-609 only if it proceeds without a breach of the peace.

  5. After repossession, UCC Article 9 requires that every aspect of the sale of the collateral be what?

    Answer: Commercially reasonable

    UCC § 9-610 requires that every aspect of a disposition, including method, manner, time, place, and terms, be commercially reasonable.

  6. The FTC Red Flags Rule requires covered creditors to do which of these?

    Answer: Implement a written Identity Theft Prevention Program

    The Red Flags Rule requires a written program to detect, prevent, and mitigate identity theft for covered accounts.

  7. Before funding a contract, screening an applicant against the Specially Designated Nationals (SDN) list meets the requirements of which agency?

    Answer: OFAC

    The Treasury Department's Office of Foreign Assets Control maintains the SDN list and prohibits transactions with listed parties.