Mixed Deck — All CAC Topics Flashcards

What is the main purpose of a summative evaluation of a training program?

Answer: To judge overall effectiveness after completion

Summative evaluation judges outcomes or effectiveness after the program ends.

What is the primary difference between a 'portfolio' and a 'purchase' program in indirect auto financing?

Answer: Purchase programs pay the dealer a one-time amount, while portfolio programs pay an advance plus potential future collections

In purchase programs the dealer gets one upfront payment; portfolio programs pay an advance and later back-end amounts.

Which federal law governs the privacy notices a finance company must give consumers regarding their nonpublic personal information?

Answer: Gramm-Leach-Bliley Act

The GLBA requires financial institutions to provide privacy notices and safeguard consumer information.

Which situation would most likely require a contract to be rewritten before funding?

Answer: The disclosed APR on the contract is incorrect

Inaccurate TILA disclosures like the APR typically require a corrected, re-signed contract.

GAP coverage mitigates which risk for the lender and borrower?

Answer: The shortfall between the insurance payout and the loan balance after a total loss

GAP covers the deficiency when a totaled vehicle's value is less than what is still owed.

Under FFIEC uniform retail credit guidance, closed-end retail loans such as auto loans are generally charged off by how many days past due?

Answer: 120 days

FFIEC guidance generally calls for closed-end retail loans to be charged off at 120 days delinquent.

Generally, what are the acceptable hours for collection calls under the FDCPA and Regulation F?

Answer: 8 a.m. to 9 p.m. in the consumer's local time

Calls before 8 a.m. or after 9 p.m. in the consumer's local time are presumed inconvenient.

Why is compliance monitoring essential in contract management?

Answer: To minimize legal and operational risks

Compliance monitoring is essential in contract management to ensure that all parties adhere to the agreed-upon terms and relevant legal and regulatory requirements. By continuously tracking performance and adherence, corporations can identify potential breaches or non-compliance issues early. This proactive approach helps to minimize legal disputes, financial penalties, and operational risks, protecting the corporation's interests.

The Gramm-Leach-Bliley Act mainly requires financial institutions to:

Answer: Protect the privacy and security of consumers' nonpublic personal information

GLBA's Privacy Rule and Safeguards Rule govern how customer financial information is shared and protected.

After repossessing a vehicle, what must a secured party generally send before disposing of the collateral under UCC Article 9?

Answer: A reasonable authenticated notification of disposition

UCC 9-611 requires reasonable notification of disposition to the debtor and certain secondary obligors.

What is a Risk Register used for in acceptance project management?

Answer: To identify, assess, and track project risks along with their probability, impact, and mitigation plans

A Risk Register captures identified risks, their likelihood and impact, assigned owners, and planned responses to manage uncertainty proactively.

Under the CECL standard (ASC 326), how must lenders estimate credit losses on loans?

Answer: Expected lifetime losses from the time the loan is originated

CECL requires lenders to record expected credit losses over the full contractual life at origination.

Under the Servicemembers Civil Relief Act, what is the maximum interest rate on qualifying pre-service obligations during military service?

Answer: 6%

The SCRA caps interest at 6% on obligations incurred before active duty once the servicemember gives written notice and military orders.

Which is an example of a deceptive advertising practice?

Answer: Promoting 'guaranteed approval' when approval actually depends on credit review

Claims that mislead consumers about material terms, such as false approval guarantees, are deceptive under UDAAP and FTC rules.

What is a Work Breakdown Structure (WBS) and how is it used in acceptance project planning?

Answer: A hierarchical decomposition of project deliverables that organizes and defines the total scope of work

A WBS breaks the project into manageable components, enabling accurate scheduling, cost estimation, and assignment of acceptance responsibilities.

Under FCRA, a furnisher that learns information it reported to a credit bureau is inaccurate must do what?

Answer: Promptly notify the bureau and provide corrections

FCRA § 623 requires furnishers to promptly correct and update information they determine is incomplete or inaccurate.

Under the FCRA, which is required when a creditor offers less favorable terms based on a consumer report?

Answer: A risk-based pricing notice or credit score disclosure

FCRA requires a risk-based pricing notice (or a credit score disclosure exception notice) when report-based terms are materially less favorable.

In acceptance testing, what does AQL (Acceptable Quality Level) define?

Answer: The maximum percent of defective units considered acceptable in a sampling plan

AQL defines the worst acceptable average quality level—the maximum percentage of defects that is still considered satisfactory for acceptance.

Why do finance companies use standardized contract forms approved for each state?

Answer: State laws differ on disclosures, rate caps, and required terms

State-specific forms help ensure compliance with varying state retail installment sales laws.

How should applied methods and techniques knowledge be maintained and updated?

Answer: Through continuous professional development, current literature review, and professional networking

Professional competence requires ongoing development through education, literature review, and engagement with the professional community.