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
A consumer discovers a fraudulent account on their credit report. Under FCRA, within how many days must a credit bureau complete its investigation after receiving a dispute?
Answer: 30 days
The FCRA generally requires credit bureaus to complete investigations of consumer disputes within 30 days (extended to 45 days if the consumer provides additional information).
Which consumer protection law specifically addresses abusive practices in payday lending and requires lenders to assess a borrower's ability to repay?
Answer: CFPB Small Dollar Rule
The CFPB's Small Dollar Lending Rule (Payday Rule) requires certain lenders to determine that borrowers have the ability to repay before extending short-term high-cost loans.
Under the Real Estate Settlement Procedures Act (RESPA), what practice is explicitly prohibited?
Answer: Paying kickbacks or referral fees between settlement service providers
RESPA Section 8 prohibits giving or receiving any fee, kickback, or thing of value in exchange for referrals of settlement services.
The Military Lending Act (MLA) caps the Military Annual Percentage Rate (MAPR) on consumer credit extended to active-duty servicemembers at what level?
Answer: 36%
The MLA caps the MAPR at 36% for most consumer credit products offered to active-duty servicemembers and their dependents.
Which of the following best describes a 'holder in due course' issue addressed by the FTC Holder Rule?
Answer: A consumer cannot assert defenses against a third-party creditor who purchased the debt
The FTC Holder Rule requires consumer credit contracts to include a notice preserving consumers' right to assert claims against subsequent holders of the contract.
Under the Children's Online Privacy Protection Act (COPPA), parental consent is required before collecting personal information from children under what age?
Answer: 13
COPPA requires verifiable parental consent before collecting, using, or disclosing personal information from children under the age of 13.
Under the FTC's Used Car Rule, dealers must display a Buyers Guide on all used vehicles. What must the Buyers Guide disclose?
Answer: Whether the car is sold 'as is' or with a warranty, and major defect systems
The FTC Used Car Rule Buyers Guide must disclose whether the vehicle is sold 'as is' or with a warranty, and if warranted, what systems are covered and the percentage of repair costs the dealer will pay.