Capital One Assessment Test Safety and Compliance 5 — Questions and Answers
Question 1: Under the Military Lending Act (MLA), what is the maximum Military Annual Percentage Rate (MAPR) a lender can charge to active-duty servicemembers on covered credit products?
- 18%
- 21%
- 28%
- 36% (Correct answer)
Correct answer: 36%
The MLA caps the MAPR at 36% for covered credit products extended to active-duty servicemembers and their dependents, and requires specific disclosures.
Question 2: What is the primary obligation of a Capital One employee who overhears a colleague discussing customer account details loudly in a shared workspace?
- Ignore it since colleagues are authorized to access account data
- Remind the colleague to move to a private area or lower their voice to protect customer privacy (Correct answer)
- Report the colleague to HR for a privacy violation immediately
- Document the incident in writing and file it with compliance
Correct answer: Remind the colleague to move to a private area or lower their voice to protect customer privacy
Protecting customer confidentiality requires ensuring sensitive information is not overheard; the immediate and proportionate response is to prompt the colleague to move to a private space.
Question 3: A customer claims they did not authorize a $200 ACH debit from their checking account. Under Regulation E, what is the maximum amount of liability for the customer if they report the error within 2 business days?
- $0
- $50 (Correct answer)
- $500
- Unlimited
Correct answer: $50
Under Regulation E, if a customer reports an unauthorized electronic fund transfer within 2 business days of learning of the loss, their liability is capped at $50.
Question 4: Which of the following is an example of 'disparate impact' discrimination in lending?
- Charging a higher rate to a customer because they are Hispanic
- A neutral lending policy that statistically results in fewer approvals for minority applicants without business justification (Correct answer)
- Refusing to explain denial reasons to a non-English-speaking customer
- Offering a lower rate to a customer who mentions they are a veteran
Correct answer: A neutral lending policy that statistically results in fewer approvals for minority applicants without business justification
Disparate impact occurs when a facially neutral policy has a disproportionately negative effect on a protected class and cannot be justified by legitimate business necessity.
Question 5: What should a Capital One associate do when they receive an internal email asking them to 'urgently' wire transfer funds to a new vendor account that was never previously used?
- Process it quickly to meet the urgent deadline stated in the email
- Verify the request through a phone call to a known contact using established contact information (Correct answer)
- Forward it to finance since it is outside their role
- Email the sender back to confirm before processing
Correct answer: Verify the request through a phone call to a known contact using established contact information
Urgent wire transfer requests to new payees are a hallmark of Business Email Compromise (BEC) fraud; verification must be done via phone using a known, pre-established number — not by replying to the email.
Question 6: Capital One's Code of Business Conduct and Ethics generally requires employees to disclose which of the following?
- Their personal investment portfolio annually
- Any situation that could create a conflict of interest with their job duties (Correct answer)
- All personal relationships with coworkers
- Their outside social media activity
Correct answer: Any situation that could create a conflict of interest with their job duties
Employees are required to disclose actual or potential conflicts of interest — such as financial interests in vendors or personal relationships with competitors — so the company can manage them appropriately.
Question 7: Under the Servicemembers Civil Relief Act (SCRA), what interest rate cap applies to pre-service debts for active-duty military members who provide proper notice?
- 0%
- 3%
- 6% (Correct answer)
- 10%
Correct answer: 6%
The SCRA caps the interest rate on pre-service debts at 6% per year while the servicemember is on active duty, upon written request and a copy of military orders.
Capital One Assessment Test Safety and Compliance 5
Under the Military Lending Act (MLA), what is the maximum Military Annual Percentage Rate (MAPR) a lender can charge to active-duty servicemembers on covered credit products?