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CFPB MCT 3 Questions & answers latest update 2024/2025 with complete solution
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CFPB MCT 3 Questions & answers latest update 2024/2025 with complete solution
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STUVIA 2024/2025CFPB MCT 3
A. Credit the balance to the account and refund the remaining credit balance within 7
days of receiving a written request. - ✔✔7. Any time that a credit balance greater than
$1 is created in a consumer's account, what must a servicer do?
A. Credit the balance to the account and refund the remaining credit balance within 7
days of receiving a written request.
B. Credit the balance to the account only, no refund is necessary.
C. Credit the balance to the account and refund the remaining credit balance within 10
days of receiving a written request.
D. Refund the credit balance within 12 months if no written request is received.
a. True - ✔✔Credit Card
8. First Credit Card Financial charges an annual renewal fee on its credit cards. It must
provide written notice at least 30 days or one billing cycle, whichever is less, before the
cycle during which the fee is initially charged, or at the time of imposing the fee if the
cardholder has 30 days to cancel with no obligation.
a. True
%
b. False
A. A pre - approval offer touts a " 0 % APR and No Fee " but charges $ 150 processing
fee if approved - ✔✔Credit Card
6. Which of the following would be considered "deceptive" acts or practices?
A. A pre - approval offer touts a " 0 % APR and No Fee " but charges $ 150 processing
fee if approved
B. An offer that states "No Balance Transfer Fee" if balances transferred within next
three months up to a maximum of $20,000
C. W hile processing an application, providing information on optional credit protection
plans and the various benefits and costs
D. A and B
b. $50 - ✔✔Credit Card
2. Jane Smith lost her credit card and reported the loss to the card issuer two days
later. with the card. One day after the card issuer was notified a $100 purchase was
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made with the Between the time the card was lost and reported, a $60 unauthorized
purchase was m ade card. Jane's liability for these unauthorized charges is:
a. $60
b. $50
c. $100
d. $O
d. None of the above - ✔✔Credit Card
9. Which of the following statements are correct?
a. A credit card lender may but need not provide a firm offer of credit to each consumer
on the prescreen list.
b. A credit card lender may not verify creditworthiness of the consumer upon making
an offer to each consumer on a prescreen list.
c. Prescreening is a procedures where a credit bureau pulls credit reports on specific
consumers and provides the reports to a credit card lender
d. None of the above
%
c. Require repayment of the account balance by amortizing the balance over a five
year period - ✔✔Credit Card
7. Ms. Brady has exercised her right to reject an increase in her credit card APR.
Which is her lender allowed to do?
a. Require the balance be paid in full within 90 days.
b. Increase her APR.
c. Require repayment of the account balance by amortizing the balance over a five
year period
d. Impose a fee for processing the rejection
d. All of the above. - ✔✔Credit Card
6. Which statement is true regarding the notice a credit card lender must provide
before an over-the-limit fee or a penalty rate can be imposed due to a consumer
exceeding a newly decreased credit limit?
a. It may be provided orally or in writing.
b. It must be provided at least 45 days before increasing the rate or charging an
over-the- limit fee.
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c. It must notify the consumer that the credit limit on the account has been or will be
decreased
d. All of the above.
A. Unsolicited issuance of credit cards - ✔✔Credit Card
14. TILA bans:
A. Unsolicited issuance of credit cards
B. Issuance of credit cards in response to an oral or written request or application for
the card
C. Issuance of credit cards as a renewal of, or substitute for a previously accepted card
D. All of the above
D. All of the above - ✔✔Credit Card
15. Under the FCRA, if credit is denied, the adverse action notice must contain the
following:
A. Name, address & telephone
B. A statement that the credit bureau number of the credit bureau providing the credit
%
report was not involved with the ad verse action and will not be able to provide specific
reasons for the action
C. A notice of the applicant's right to obtain a free bureau within 60 days and to dispute
the accuracy of any information in the credit copy of the credit report from the credit
report
D. All of the above
A. True - ✔✔Credit Card
8. Under federal law, a federally insured credit card lender can charge any rates and
terms to a customer located in another state as permitted by the state where the lender
is located.
A. True
B. False
b. False - ✔✔Credit Card
11. A credit card lender that prescreens consumer must retain for a least 25 months a
record of the criteria used to select the consumer for the offer
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