CCT Key Federal Regulations 5 — Questions and Answers
Question 1: Under the Americans with Disabilities Act (ADA) Title III, financial institutions must:
- Hire a minimum percentage of disabled employees
- Provide equal access to goods and services for individuals with disabilities (Correct answer)
- Install ATMs only in accessible locations
- Waive fees for disabled customers
Correct answer: Provide equal access to goods and services for individuals with disabilities
ADA Title III requires places of public accommodation, including financial institutions, to provide equal access to their goods and services for people with disabilities.
Question 2: Which federal law requires financial institutions to maintain records of cash purchases of negotiable instruments between $3,000 and $10,000?
- Bank Secrecy Act (BSA) — Travel Rule
- BSA — Monetary Instrument Log (MIL) (Correct answer)
- USA PATRIOT Act Section 314(a)
- Currency and Foreign Transactions Reporting Act
Correct answer: BSA — Monetary Instrument Log (MIL)
The BSA requires financial institutions to maintain a Monetary Instrument Log for cash purchases of certain instruments between $3,000 and $10,000.
Question 3: Under the Home Ownership and Equity Protection Act (HOEPA), high-cost mortgage loans trigger additional protections when which threshold is exceeded?
- APR exceeds the prime rate by 1%
- APR exceeds the Average Prime Offer Rate by defined thresholds or points/fees exceed limits (Correct answer)
- Loan-to-value ratio exceeds 80%
- Loan term exceeds 30 years
Correct answer: APR exceeds the Average Prime Offer Rate by defined thresholds or points/fees exceed limits
HOEPA coverage is triggered when the APR exceeds the APOR by certain thresholds or when points and fees exceed defined limits set by the CFPB.
Question 4: The Children's Online Privacy Protection Act (COPPA) applies to websites that collect personal information from children under the age of:
- 13 (Correct answer)
- 16
- 18
- 21
Correct answer: 13
COPPA applies to operators of commercial websites and online services directed to children under 13, requiring verifiable parental consent for data collection.
Question 5: Under Regulation E (Electronic Fund Transfer Act), financial institutions must resolve error claims related to unauthorized EFTs within how many business days provisionally?
- 5 business days
- 10 business days (Correct answer)
- 20 business days
- 45 business days
Correct answer: 10 business days
Under Reg E, institutions must provisionally credit the consumer's account within 10 business days while completing a full investigation within 45 days.
Question 6: The Bank Merger Act requires approval from which regulator when a national bank proposes to merge with another institution?
- Federal Reserve Board
- FDIC
- OCC (Correct answer)
- FinCEN
Correct answer: OCC
The OCC is the responsible agency for approving mergers where the resulting institution will be a national bank or federal savings association.
Question 7: Under the Telephone Consumer Protection Act (TCPA), prior express written consent is required before making autodialed calls or sending texts for:
- Informational messages only
- Marketing or promotional communications (Correct answer)
- Fraud alerts and security notifications
- Appointment reminders from healthcare providers
Correct answer: Marketing or promotional communications
The TCPA requires prior express written consent from consumers before making autodialed or prerecorded marketing calls or sending promotional text messages.
CCT Key Federal Regulations 5
Under the Americans with Disabilities Act (ADA) Title III, financial institutions must: