CAM Regulatory Compliance 3

Question 1

The Dodd-Frank Wall Street Reform Act established which new consumer protection agency?

Accepted Answer

CFPB

Answer

The Consumer Financial Protection Bureau (CFPB) was created by Dodd-Frank to regulate consumer financial products and services.

Question 2

Under the Equal Credit Opportunity Act (ECOA), how long must a creditor retain records for a completed credit application?

Accepted Answer

25 months

Answer

ECOA requires creditors to retain records of credit applications and actions for 25 months (12 months for business credit).

Question 3

A compliance officer discovers that a branch has been charging higher rates to minority applicants with equivalent credit profiles. This most likely violates:

Accepted Answer

The Fair Housing Act and ECOA

Answer

Disparate pricing based on race violates both ECOA and the Fair Housing Act, which prohibit discriminatory lending practices.

Question 4

Which provision of Regulation E protects consumers using electronic fund transfer services against unauthorized transactions?

Accepted Answer

The error resolution procedure

Answer

Regulation E's error resolution procedures require institutions to investigate and resolve reported unauthorized EFT transactions within set timeframes.

Question 5

Under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide customers a privacy notice:

Accepted Answer

Annually and when privacy practices change materially

Answer

GLBA requires institutions to give customers an initial notice at account opening and an annual privacy notice thereafter.

(CAM) Certified Account Manager Practice Test

(CAM) Certified Account Manager Practice Test

CAM Regulatory Compliance 3