Applied Methods and Techniques Flashcards
7 cards from real CAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Applied Methods and Techniques flashcards as text
A dealer sells a contract with $15,000 financed and the lender pays a dealer reserve of 2% of the amount financed. What is the reserve?
Answer: $300
$15,000 × 2% = $300.
Which practice best reduces fair lending risk when dealers have discretion to mark up the buy rate?
Answer: Cap markups and monitor pricing outcomes across borrower groups
Markup caps plus disparity monitoring help detect and limit discriminatory pricing under ECOA.
What does a deficiency balance represent after a repossessed vehicle is sold?
Answer: The remaining amount owed after sale proceeds are applied
If sale proceeds net of costs do not cover the balance, the shortfall is the deficiency.
Which verification technique best confirms residence for a funding stipulation?
Answer: A recent utility bill in the applicant's name at the stated address
A recent third-party bill in the applicant's name provides independent proof of residence.
Under the TCPA, what is generally required before placing autodialed or prerecorded calls to a consumer's cell phone?
Answer: The consumer's prior express consent
The TCPA requires prior express consent for autodialed or prerecorded calls to cell phones.
Which method best assesses an applicant's stability when credit history is limited?
Answer: Review time at residence, time on job, and verifiable income
Residence and employment tenure plus verified income are standard stability indicators for thin-file applicants.
Under the FDCPA, without prior consent, collectors are presumed to call at an inconvenient time if they call outside which hours (consumer's local time)?
Answer: Before 8 a.m. or after 9 p.m.
The FDCPA presumes calls before 8 a.m. or after 9 p.m. local time are inconvenient.