Practice Test GeeksCAC - Certified Acceptance Corporation Professional Practice Test
← All CAC Flashcard Decks

Professional Standards and Ethics 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 Professional Standards and Ethics flashcards as text

  1. A dealer asks you to approve a loan application where the applicant's stated income is clearly inflated. What is the most ethical response?

    Answer: Decline to process it as submitted and request verifiable income documentation

    Knowingly processing falsified income information is fraud, so the income must be verified before any decision.

  2. Under the Equal Credit Opportunity Act (ECOA), which factor may NOT be used to deny credit?

    Answer: Marital status

    ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age (if the applicant can contract), or receipt of public assistance.

  3. A customer offers you a gift card after you help them get financing approved. What should you do first?

    Answer: Politely decline or report it as your company's gift policy requires

    Company gift policies exist to prevent conflicts of interest and the appearance of favoritism.

  4. Which federal law requires lenders to clearly disclose the APR and finance charge before a consumer credit contract is signed?

    Answer: Truth in Lending Act

    The Truth in Lending Act (Regulation Z) requires clear disclosure of the APR, finance charge, amount financed, and total of payments.

  5. An employee notices a coworker regularly overriding underwriting guidelines without documenting a reason. What is the appropriate action?

    Answer: Report the concern through the company's compliance or ethics channel

    Undocumented overrides create compliance and fair-lending risk and should be escalated through proper channels.

  6. What does 'UDAAP' stand for in consumer financial regulation?

    Answer: Unfair, Deceptive, or Abusive Acts or Practices

    The Dodd-Frank Act prohibits Unfair, Deceptive, or Abusive Acts or Practices in consumer financial products, and the CFPB enforces it.

  7. A customer is confused about their contract terms. What best shows professional integrity?

    Answer: Explain the key terms clearly and accurately, and answer their questions

    Explaining terms clearly and honestly supports informed consent and avoids deceptive practices.