Professional Standards and Ethics 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 Professional Standards and Ethics flashcards as text
Under the Fair Credit Reporting Act (FCRA), what must a creditor provide when it takes adverse action based partly on a credit report?
Answer: An adverse action notice naming the consumer reporting agency used
FCRA requires an adverse action notice that names the reporting agency and explains the consumer's right to a free report and to dispute errors.
Which practice is an example of 'payment packing'?
Answer: Quoting an inflated monthly payment so add-on products can be slipped in without the customer noticing
Payment packing inflates the quoted payment to hide add-on products, which is a deceptive practice.
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.
A friend asks you to look up a neighbor's account balance as a favor. What is the correct response?
Answer: Refuse, because accessing customer data without a business purpose violates policy and privacy law
Customer data may be accessed only for legitimate business purposes, and anything else breaches confidentiality and privacy rules.
Which situation is a conflict of interest?
Answer: Underwriting a loan for your own relative without disclosing the relationship
Making decisions where you have a personal relationship or stake, without disclosing it, is a conflict of interest.
What is the main purpose of a company code of conduct?
Answer: To set expected ethical behavior and guide decisions in gray areas
A code of conduct turns company values and legal duties into practical standards for everyday behavior.
A customer with limited English proficiency is signing a contract. What best practice supports fair treatment?
Answer: Make sure terms are explained in a language they understand, following company policy
Making sure the customer understands the material terms supports informed consent and fair-lending principles.