Compliance and Regulatory Standards Flashcards

Under Regulation Z, which disclosure must appear on a retail installment contract for a closed-end auto loan?

Answer: The Annual Percentage Rate (APR)

TILA/Regulation Z requires closed-end credit disclosures including the APR, finance charge, amount financed, and total of payments.

Under the Equal Credit Opportunity Act, how soon must a creditor generally notify an applicant of action taken on a completed application?

Answer: Within 30 days

Regulation B requires notice of action taken within 30 days after receiving a completed application.

Which of the following is a prohibited basis for credit decisions under ECOA?

Answer: Receipt of public assistance income

ECOA prohibits discrimination because all or part of an applicant's income derives from a public assistance program.

The FTC Holder Rule requires consumer credit contracts to include a notice that does what?

Answer: Lets the assignee of the contract be subject to claims and defenses the buyer has against the seller

The Holder Rule preserves the consumer's claims and defenses against any holder of the contract, such as a finance company that bought it from the dealer.

Which federal agency has primary supervisory authority over large nonbank auto finance companies for consumer financial protection laws?

Answer: Consumer Financial Protection Bureau

The CFPB supervises larger participants in the auto finance market under its larger-participant rule.

Under the Fair Credit Reporting Act, which of these is a permissible purpose for pulling a consumer report?

Answer: Evaluating a credit application the consumer started

FCRA allows access in connection with a credit transaction the consumer initiated.

UDAAP authority under the Dodd-Frank Act adds which standard beyond the FTC Act's 'unfair or deceptive'?

Answer: Abusive

Dodd-Frank prohibits unfair, deceptive, or abusive acts or practices, and 'abusive' is the newer standard.