CRCM Consumer Protection Regulations 2 — Questions and Answers
Question 1: Under Regulation E, a financial institution must resolve an error investigation within how many business days for most transactions?
- 5 business days
- 10 business days (Correct answer)
- 45 business days
- 90 business days
Correct answer: 10 business days
Under Regulation E, institutions generally have 10 business days to investigate and resolve EFT error claims.
Question 2: The Home Equity Loan Consumer Protection Act requires lenders to provide disclosures for HELOCs at least how many days before account opening?
- 1 day
- 3 days (Correct answer)
- 5 days
- 7 days
Correct answer: 3 days
Lenders must provide HELOC disclosures at least 3 business days before account opening so consumers can shop and compare.
Question 3: Under TILA's right of rescission, a borrower has how many business days to cancel a non-purchase home-secured loan?
- 1 business day
- 3 business days (Correct answer)
- 5 business days
- 7 business days
Correct answer: 3 business days
Borrowers have three business days to rescind (cancel) a non-purchase home-secured loan after consummation, delivery of the rescission notice, or delivery of required disclosures.
Question 4: Regulation DD, which implements the Truth in Savings Act, requires depository institutions to disclose:
- Minimum balance requirements and fees for deposit accounts (Correct answer)
- Maximum loan amounts available to depositors
- Branch hours and ATM locations
- Employee compensation linked to deposit growth
Correct answer: Minimum balance requirements and fees for deposit accounts
Regulation DD requires clear disclosure of interest rates, fees, and terms for deposit accounts so consumers can compare savings products.
Question 5: The Fair Debt Collection Practices Act (FDCPA) restricts debt collectors from contacting consumers:
- At any time if the consumer has an outstanding balance
- Before 8 a.m. or after 9 p.m. local time (Correct answer)
- More than once per week for each debt
- During business hours without a court order
Correct answer: Before 8 a.m. or after 9 p.m. local time
The FDCPA prohibits debt collectors from contacting consumers before 8 a.m. or after 9 p.m. in the consumer's local time zone.
Question 6: Under the Dodd-Frank Act, the CFPB has supervisory authority over which institutions without regard to asset size?
- All community banks
- Non-bank financial companies offering consumer financial products (Correct answer)
- Only credit unions with federal charters
- Mortgage brokers operating only in one state
Correct answer: Non-bank financial companies offering consumer financial products
The CFPB has supervisory authority over non-bank entities (e.g., payday lenders, mortgage companies) offering consumer financial products regardless of size.
CRCM Consumer Protection Regulations 2
Under Regulation E, a financial institution must resolve an error investigation within how many business days for most transactions?