Professional Standards and Ethics Flashcards

Under the Fair Debt Collection Practices Act, which collection behavior is prohibited?

Answer: Threatening arrest for nonpayment of a consumer debt

The FDCPA bans false or misleading threats, such as threatening arrest or other actions that cannot legally be taken.

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.

An auditor asks for loan files you know have documentation gaps. What is the ethical approach?

Answer: Provide the files as they are and disclose the known gaps honestly

Altering, backdating, or hiding records is unethical and may be illegal, so transparency with auditors is required.

What is 'disparate impact' in fair lending?

Answer: A neutral policy that disproportionately harms a protected class without a valid business justification

Disparate impact happens when a facially neutral policy disproportionately hurts a protected group without adequate business necessity.

An employee realizes they made an error that overcharged a customer. What should they do?

Answer: Report the error promptly so it can be corrected and the customer made whole

Promptly disclosing and fixing errors shows accountability and limits regulatory and reputational harm.

Which practice best protects customer data when working remotely?

Answer: Using company-approved secure connections and locking screens when away

Approved secure connections and physical safeguards help meet GLBA Safeguards Rule expectations.

A manager pressures you to meet an approval quota by bending credit guidelines. What is the best response?

Answer: Follow the guidelines and escalate the pressure through ethics or compliance channels

Production pressure never justifies breaking credit policy, and retaliation-protected reporting channels exist for exactly this situation.