FiCEP - Financial Counseling Certification Program Consumer Protection Laws Questions and Answers

Question 1

A client is upset because a third-party debt collector called their workplace, discussed the debt with a coworker, and used profane language.
Which consumer protection law most directly addresses these specific actions?

Accepted Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

Truth in Lending Act (TILA)

Answer

Equal Credit Opportunity Act (ECOA)

Answer

Fair Credit Reporting Act (FCRA)

Question 2

A member applies for a mortgage and is denied. Under the Equal Credit Opportunity Act (ECOA), which of the following reasons for denial is illegal?

Accepted Answer

The applicant's income is primarily from a public assistance program.

Answer

The applicant has a low credit score and insufficient income.

Answer

The applicant has a high debt-to-income ratio.

Answer

The property appraisal was lower than the loan amount requested.

Question 3

To help a client compare the costs of two different car loans, a financial counselor would advise them to look at the disclosure form provided by the lender. Which law mandates that lenders provide this standardized disclosure showing the Annual Percentage Rate (APR) and total finance charge?

Accepted Answer

Truth in Lending Act (TILA)

Answer

Fair and Accurate Credit Transactions Act (FACTA)

Answer

Consumer Financial Protection Act (CFPA)

Answer

Fair Debt Collection Practices Act (FDCPA)

Question 4

A client discovers an account on their credit report that they never opened. Under the Fair Credit Reporting Act (FCRA), what is the most appropriate first step for the client to take?

Accepted Answer

File a formal dispute with the credit reporting agency that issued the report.

Answer

Immediately sue the credit reporting agency for damages.

Answer

Pay the balance on the fraudulent account to protect their credit score.

Answer

Wait for 7 years until the account is automatically removed from the report.

Question 5

Which of the following entities was established by the Dodd-Frank Act to serve as the primary federal agency for administering and enforcing consumer financial protection laws?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Federal Trade Commission (FTC)

Answer

Office of the Comptroller of the Currency (OCC)

Answer

Federal Deposit Insurance Corporation (FDIC)

Question 6

A debt collector contacts a client about a past-due medical bill. The client is unsure if they actually owe the debt. According to the Fair Debt Collection Practices Act (FDCPA), what right does the client have?

Accepted Answer

The right to request a written validation notice from the debt collector.

Answer

The right to have the debt automatically forgiven if they claim it's not theirs.

Answer

The right to sue the original creditor immediately.

Answer

The right to have the debt collector pay them for emotional distress.

A client is upset because a third-party debt collector called their workplace, discussed the debt with a coworker, and used profane language.Which consumer protection law most directly addresses these specific actions?

A client is upset because a third-party debt collector called their workplace, discussed the debt with a coworker, and used profane language.
Which consumer protection law most directly addresses these specific actions?