CAC Compliance and Regulatory Standards 2

Question 1

Under Regulation Z, which disclosure must appear on a retail installment contract for a closed-end auto loan?

Accepted Answer

The Annual Percentage Rate (APR)

Answer

TILA/Regulation Z requires closed-end credit disclosures including the APR, finance charge, amount financed, and total of payments.

Question 2

Under the Equal Credit Opportunity Act, how soon must a creditor generally notify an applicant of action taken on a completed application?

Accepted Answer

Within 30 days

Answer

Regulation B requires notice of action taken within 30 days after receiving a completed application.

Question 3

Which of the following is a prohibited basis for credit decisions under ECOA?

Accepted Answer

Receipt of public assistance income

Answer

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

Question 4

The FTC Holder Rule requires consumer credit contracts to include a notice that does what?

Accepted Answer

Lets the assignee of the contract be subject to claims and defenses the buyer has against the seller

Answer

The Holder Rule preserves the consumer's claims and defenses against any holder of the contract, such as a finance company that bought it from the dealer.

Question 5

Which federal agency has primary supervisory authority over large nonbank auto finance companies for consumer financial protection laws?

Accepted Answer

Consumer Financial Protection Bureau

Answer

The CFPB supervises larger participants in the auto finance market under its larger-participant rule.

CAC - Certified Acceptance Corporation Professional Practice Test

CAC - Certified Acceptance Corporation Professional Practice Test

CAC Compliance and Regulatory Standards 2