FiCEP Consumer Protection Laws 4

Question 1

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?

Accepted Answer

$50

Answer

The EFTA limits consumer liability to $50 if the loss or theft of an ATM/debit card is reported within 2 business days.

Question 2

Which federal law prohibits debt collectors from contacting a consumer at work if the collector knows the employer disapproves?

Accepted Answer

Fair Debt Collection Practices Act

Answer

The FDCPA specifically prohibits debt collectors from contacting consumers at their place of employment if the collector knows the employer prohibits such contact.

Question 3

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to do which of the following?

Accepted Answer

Provide privacy notices explaining information-sharing practices

Answer

GLBA requires financial institutions to give customers privacy notices describing how personal financial information is collected and shared.

Question 4

Which agency enforces consumer financial protection laws for most nonbank financial companies under the Dodd-Frank Act?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

The CFPB was created by the Dodd-Frank Act and has primary supervisory and enforcement authority over nonbank financial companies offering consumer financial products.

Question 5

Under the Telephone Consumer Protection Act (TCPA), what must businesses obtain before sending marketing text messages to consumers?

Accepted Answer

Written consent from the consumer

Answer

The TCPA requires prior express written consent before sending automated marketing texts or calls to consumers.

FiCEP - Financial Counseling Certification Program Practice Test

FiCEP - Financial Counseling Certification Program Practice Test

FiCEP Consumer Protection Laws 4