Capital One Assessment Test Standards and Regulations 3

Question 1

The Truth in Lending Act (TILA), implemented as Regulation Z, requires creditors to disclose which key metric to enable consumers to compare loan costs?

Accepted Answer

Annual Percentage Rate (APR)

Answer

TILA requires creditors to disclose the Annual Percentage Rate (APR), which reflects the true cost of credit including fees and interest.

Question 2

Under the Fair Credit Reporting Act (FCRA), how long can a Chapter 7 bankruptcy remain on a consumer's credit report?

Accepted Answer

10 years

Answer

Chapter 7 bankruptcy can remain on a credit report for up to 10 years from the filing date under the FCRA.

Question 3

What is the primary purpose of the Office of Foreign Assets Control (OFAC) sanctions programs relevant to banks?

Accepted Answer

To prohibit transactions with designated countries, entities, and individuals

Answer

OFAC administers sanctions programs that prohibit U.S. persons and institutions from conducting transactions with designated foreign countries, entities, and individuals.

Question 4

Which standard framework do U.S. banks use to guide their Anti-Money Laundering (AML) programs, requiring Customer Identification Programs and ongoing monitoring?

Accepted Answer

Bank Secrecy Act / USA PATRIOT Act framework

Answer

The BSA, enhanced by the USA PATRIOT Act, provides the core framework for AML programs including CIP, suspicious activity monitoring, and reporting.

Question 5

Under the Fair Debt Collection Practices Act (FDCPA), which of the following is a prohibited debt collection practice?

Accepted Answer

Calling a debtor at their workplace if the collector knows the employer prohibits such calls

Answer

The FDCPA prohibits collectors from contacting a debtor at work if the collector knows the employer prohibits such contact.

Capital One Assessment Test Practice Test

Capital One Assessment Test Practice Test

Capital One Assessment Test Standards and Regulations 3