Safety and Compliance Flashcards

Which agency primarily enforces consumer protection rules against franchised auto dealers that routinely assign contracts to third-party finance companies?

Answer: FTC

Dodd-Frank Section 1029 largely excludes such dealers from CFPB authority, leaving the FTC as the primary federal enforcer.

Under the GLBA Privacy Rule, when must a financial institution provide an initial privacy notice to a customer?

Answer: No later than when the customer relationship is established

An initial privacy notice must be given no later than when the customer relationship begins.

Under the E-SIGN Act, what must a consumer generally do before required disclosures can be delivered electronically?

Answer: Affirmatively consent after receiving specified disclosures

E-SIGN requires affirmative consumer consent, preceded by required disclosures, before electronic delivery replaces paper.

Under the TCPA, what is generally required before using an autodialer to call a consumer's cell phone for account servicing?

Answer: Prior express consent

The TCPA requires prior express consent for autodialed or prerecorded calls to cell phones.

Which practice does the FTC Credit Practices Rule prohibit in consumer credit contracts?

Answer: Confession of judgment clauses

The Credit Practices Rule bans confessions of judgment, among other provisions such as pyramiding late charges.

Which statement about the Military Lending Act is accurate for vehicle financing?

Answer: Credit to finance a vehicle purchase secured by that vehicle is generally excluded

The MLA excludes credit expressly intended to finance a vehicle purchase and secured by that vehicle.

A finance company's lending policy has no discriminatory intent but disproportionately harms a protected group without business justification. What fair lending theory applies?

Answer: Disparate impact

Disparate impact covers neutral policies with disproportionate adverse effects on protected groups lacking business necessity.