Consumer Protection Laws Flashcards
7 cards from real FICEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Consumer Protection Laws flashcards as text
Under the Electronic Fund Transfer Act (EFTA), what is the maximum consumer liability for unauthorized transactions if the consumer reports the loss of an ATM card within 2 business days?
Answer: $50
The EFTA limits consumer liability to $50 if the loss or theft of an ATM/debit card is reported within 2 business days.
Which federal law prohibits debt collectors from contacting a consumer at work if the collector knows the employer disapproves?
Answer: Fair Debt Collection Practices Act
The FDCPA specifically prohibits debt collectors from contacting consumers at their place of employment if the collector knows the employer prohibits such contact.
The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to do which of the following?
Answer: Provide privacy notices explaining information-sharing practices
GLBA requires financial institutions to give customers privacy notices describing how personal financial information is collected and shared.
Which agency enforces consumer financial protection laws for most nonbank financial companies under the Dodd-Frank Act?
Answer: Consumer Financial Protection Bureau (CFPB)
The CFPB was created by the Dodd-Frank Act and has primary supervisory and enforcement authority over nonbank financial companies offering consumer financial products.
Under the Telephone Consumer Protection Act (TCPA), what must businesses obtain before sending marketing text messages to consumers?
Answer: Written consent from the consumer
The TCPA requires prior express written consent before sending automated marketing texts or calls to consumers.
What is the primary purpose of the Magnuson-Moss Warranty Act?
Answer: Require written warranties to be available before purchase
The Magnuson-Moss Warranty Act requires that written warranties on consumer products be available to consumers before purchase so they can make informed decisions.
Under the Fair Housing Act, which action by a lender would constitute illegal steering?
Answer: Directing minority applicants only toward high-cost loan products
Steering occurs when lenders direct borrowers from protected classes toward less favorable loan products, which is prohibited under the Fair Housing Act.