Safety and Compliance Flashcards

Under the FTC Safeguards Rule, what must a covered financial institution designate to oversee its information security program?

Answer: A Qualified Individual

The amended Safeguards Rule requires designating a Qualified Individual to oversee and enforce the program.

Under the FTC Safeguards Rule, a notification event involving at least how many consumers must be reported to the FTC?

Answer: 500

Covered institutions must notify the FTC within 30 days of discovering a breach affecting 500 or more consumers.

Which federal rule requires creditors to maintain a written Identity Theft Prevention Program?

Answer: Red Flags Rule

The FTC Red Flags Rule under FACTA requires a written program to detect and respond to identity theft warning signs.

Under ECOA, which of the following is a prohibited basis for credit decisions?

Answer: Receipt of public assistance income

ECOA prohibits discrimination because all or part of income derives from a public assistance program.

How long must a creditor generally retain consumer credit applications and related records under Regulation B?

Answer: 25 months

Regulation B requires retention of consumer credit application records for 25 months after notice of action taken.

Which statement about the FTC's three-day Cooling-Off Rule is accurate for a vehicle bought at a dealership?

Answer: It does not apply to vehicles sold at the seller's permanent place of business

The Cooling-Off Rule covers certain door-to-door or off-premises sales, not purchases at a dealer's permanent location.

Under the FCRA, which is required when a creditor offers less favorable terms based on a consumer report?

Answer: A risk-based pricing notice or credit score disclosure

FCRA requires a risk-based pricing notice (or a credit score disclosure exception notice) when report-based terms are materially less favorable.