Consumer Protection Regulations Flashcards

Which regulation implements the Home Mortgage Disclosure Act (HMDA)?

Answer: Regulation C

Regulation C is the CFPB's implementing regulation for the Home Mortgage Disclosure Act.

Under the CARD Act (Credit CARD Act of 2009), credit card issuers must provide how much advance notice before increasing an interest rate?

Answer: 45 days

The CARD Act requires 45 days advance notice before a credit card issuer can increase an interest rate or make other significant changes.

The Telephone Consumer Protection Act (TCPA) requires businesses to obtain prior express written consent before:

Answer: Sending marketing text messages or robocalls to a consumer's cell phone

The TCPA requires prior express written consent before sending marketing text messages or making robocalls to consumers' cell phones.

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

Answer: At account opening and annually thereafter

GLBA requires institutions to provide privacy notices at account opening and annually, informing customers of information sharing practices.

What is the primary purpose of the CAN-SPAM Act as it applies to financial institution marketing emails?

Answer: It sets standards for commercial email, including opt-out requirements

CAN-SPAM establishes requirements for commercial email, including clear identification, honest subject lines, and a functional opt-out mechanism.

Under RESPA's Section 10, the maximum amount a servicer may require a borrower to maintain in an escrow account for taxes and insurance is capped at:

Answer: Two months of estimated payments plus a cushion

RESPA Section 10 limits escrow cushions to no more than one-sixth of total annual disbursements (equivalent to two months of payments).