CRCM Consumer Protection Regulations

Question 1

Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) must be disclosed to allow consumers to:

Accepted Answer

Compare the true cost of credit across different lenders

Answer

The APR standardizes the cost of credit as an annualized rate, allowing consumers to meaningfully compare loan offers from different lenders.

Question 2

Regulation Z implements which federal consumer protection law?

Accepted Answer

Truth in Lending Act

Answer

Regulation Z is the Federal Reserve's (and now CFPB's) implementing regulation for the Truth in Lending Act.

Question 3

Under the Real Estate Settlement Procedures Act (RESPA), a kickback paid for the referral of settlement service business is:

Accepted Answer

Prohibited

Answer

RESPA Section 8 prohibits kickbacks and unearned fees in connection with federally related mortgage transactions.

Question 4

The Servicemembers Civil Relief Act (SCRA) provides which protection to active duty military members?

Accepted Answer

Caps interest rates on pre-service debts at 6% during active duty

Answer

The SCRA caps interest rates at 6% on debts incurred prior to active duty service for qualifying servicemembers.

Question 5

Under the Electronic Fund Transfer Act (EFTA), consumers have how many business days to report an unauthorized electronic fund transfer to limit liability to $50?

Accepted Answer

2 business days

Answer

Consumers must report unauthorized EFTs within 2 business days of learning of the loss to limit liability to $50.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM Consumer Protection Regulations