CRCM Certified Regulatory Compliance Manager MCQ 5

Question 1

Under the Children's Online Privacy Protection Act (COPPA), websites directed at children under what age must obtain verifiable parental consent before collecting personal information?

Accepted Answer

13

Answer

COPPA requires operators of websites directed to children under 13 to obtain verifiable parental consent before collecting personal information from those children.

Question 2

When a consumer disputes the accuracy of information in their credit report under the Fair Credit Reporting Act (FCRA), the credit reporting agency (CRA) must complete its investigation within:

Accepted Answer

30 days (with a possible 15-day extension)

Answer

The FCRA requires CRAs to investigate disputes within 30 days, extendable to 45 days if the consumer provides additional relevant information during the investigation.

Question 3

Which of the following actions would constitute a violation of the Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) standard under Dodd-Frank?

Accepted Answer

Misrepresenting the cost of add-on products to obtain consumer consent

Answer

Misrepresenting the cost or terms of add-on products to manipulate consumer decision-making is a deceptive act or practice prohibited by UDAAP.

Question 4

A customer opens a new account and provides identification. Under the Customer Identification Program (CIP) rules, the bank must verify the customer's identity:

Accepted Answer

Within a reasonable time before or after account opening

Answer

CIP rules require identity verification within a reasonable time before or after account opening, allowing flexibility for low-risk situations while ensuring due diligence.

Question 5

The Dodd-Frank Wall Street Reform and Consumer Protection Act created the CFPB and granted it authority over:

Accepted Answer

Nonbank financial companies offering consumer financial products or services, and large banks

Answer

The CFPB has supervisory authority over nonbank financial companies and depository institutions with over $10 billion in assets, while smaller banks are supervised by their prudential regulators.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM Certified Regulatory Compliance Manager MCQ 5