Practice Test Geeks(CCM) Certified Credit Manager Practice Test
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Regulatory Compliance & Governance Flashcards

7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance & Governance flashcards as text

  1. Under the Fair Debt Collection Practices Act (FDCPA), which of the following communications is PROHIBITED when contacting a debtor?

    Answer: Contacting a debtor before 8 a.m. or after 9 p.m. local time

    The FDCPA prohibits debt collectors from contacting consumers at inconvenient times, specifically before 8 a.m. or after 9 p.m. local time.

  2. Which regulatory body is primarily responsible for enforcing the Fair Credit Reporting Act (FCRA) for most businesses?

    Answer: Consumer Financial Protection Bureau (CFPB)

    The Consumer Financial Protection Bureau (CFPB) is the primary federal agency responsible for enforcing the FCRA for most entities.

  3. A credit manager discovers that an employee accessed customer credit files for personal reasons without authorization. Under the FCRA, what is the most appropriate immediate action?

    Answer: Terminate the employee and notify affected consumers

    Unauthorized access to consumer credit information violates the FCRA, requiring termination of the offending employee and notification to affected consumers.

  4. Which of the following best describes the 'permissible purpose' requirement under the Fair Credit Reporting Act?

    Answer: Credit reports may only be accessed for specific purposes defined by law, such as credit evaluation or employment screening

    The FCRA restricts access to consumer credit reports to specific permissible purposes enumerated in the statute, such as credit transactions, employment, or insurance underwriting.

  5. The Gramm-Leach-Bliley Act (GLBA) Safeguards Rule primarily requires financial institutions to:

    Answer: Implement a comprehensive information security program to protect customer data

    The GLBA Safeguards Rule requires financial institutions to develop, implement, and maintain a comprehensive information security program to protect customer financial information.

  6. Under SOX Section 302, which corporate officers are required to personally certify the accuracy of financial reports?

    Answer: CEO and CFO

    SOX Section 302 requires the CEO and CFO to personally certify the accuracy and completeness of financial disclosures in quarterly and annual reports.

  7. A company extends trade credit to a new customer and later discovers the customer is on the OFAC SDN (Specially Designated Nationals) list. What should the credit manager do?

    Answer: Immediately freeze the account and report to OFAC

    Transacting with entities on the OFAC SDN list is prohibited; the company must immediately freeze the account and file a report with OFAC.