CCM Regulatory Compliance & Governance 2

Question 1

Under the Fair Debt Collection Practices Act (FDCPA), which of the following communications is PROHIBITED when contacting a debtor?

Accepted Answer

Contacting a debtor before 8 a.m. or after 9 p.m. local time

Answer

The FDCPA prohibits debt collectors from contacting consumers at inconvenient times, specifically before 8 a.m. or after 9 p.m. local time.

Question 2

Which regulatory body is primarily responsible for enforcing the Fair Credit Reporting Act (FCRA) for most businesses?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

The Consumer Financial Protection Bureau (CFPB) is the primary federal agency responsible for enforcing the FCRA for most entities.

Question 3

A credit manager discovers that an employee accessed customer credit files for personal reasons without authorization. Under the FCRA, what is the most appropriate immediate action?

Accepted Answer

Terminate the employee and notify affected consumers

Answer

Unauthorized access to consumer credit information violates the FCRA, requiring termination of the offending employee and notification to affected consumers.

Question 4

Which of the following best describes the 'permissible purpose' requirement under the Fair Credit Reporting Act?

Accepted Answer

Credit reports may only be accessed for specific purposes defined by law, such as credit evaluation or employment screening

Answer

The FCRA restricts access to consumer credit reports to specific permissible purposes enumerated in the statute, such as credit transactions, employment, or insurance underwriting.

Question 5

The Gramm-Leach-Bliley Act (GLBA) Safeguards Rule primarily requires financial institutions to:

Accepted Answer

Implement a comprehensive information security program to protect customer data

Answer

The GLBA Safeguards Rule requires financial institutions to develop, implement, and maintain a comprehensive information security program to protect customer financial information.

(CCM) Certified Credit Manager Practice Test

(CCM) Certified Credit Manager Practice Test

CCM Regulatory Compliance & Governance 2