Section 4 Lesson 6 Introduction to Gramm-Leach-Bliley

Question 1

GLBA

Answer 1

The Gramm-Leach-Bliley or GLB Act is also called the financial Services Modernization Act of 1999

Question 2

FTC

Answer 2

FTC and other agencies to enforce GLB Act

Question 3

GLBA

Answer 3

Removing a prohibition on banks from offering investment and insurance to consumers.

Question 4

NPI

Answer 4

Nonpublic Personal Information

Question 5

Title V

Answer 5

Financial Privacy

Question 6

Handling Consumer Information

Answer 6

Disclose it’s sharing policies and practices

Question 7

GLBA rules

Answer 7

1. The Safe Guard Rule requires financial institutions to implement information protection security program
2. The Privacy Rule: requires financial institutions to disclose information usage policies and practices to consumers and permit them to opt out
3. The Pretexting Rule: Protects against impersonation attacks to gain consumer information

Question 8

Privacy Notices

Answer 8

Written notices are required.

Question 9

If the financial institution does share NPI, it must also provide customers with

Answer 9

An Opt-out notice describing the customer’s right to opt out NPI sharing
A reasonable way to opt out of NPi sharing
A reasonable amount of time to opt out of NPI sharing

Question 10

FTCPA

Answer 10

federal telephone consumer protection act by FCC
1991

Question 11

DNC

Answer 11

DO NOT CALL REGISTRY

However, it permits a business to call consumers with whom the business has an establishment business relationship even if the consumers are on the registry.
Fine is $46517

Question 12

Registry Guidelines

Answer 12

1. Calls between before 8am or after 9PM
   Anonymous calls,
   Calls to cell phones
   robo calls
2. Sellers and telemarketers are required to check with DNC at least once every 31 days and drop disconnected, registered or reassigned numbers from their contact lists.
3. Companies can call consumers with whom they have established business relationships for up to 18 months after the consumer’s last purchase, delivery or payment, even if the consumer is listed on the DNC

Question 13

Registry Guidelines

Answer 13

4. Up to 3 months after an inquiry or application has been made.
5. Companies can call numbers on DNC requirements by training
6. When a consumer asks to be removed from the call list the company must comply immediately.
   7 46517 is fine. Each call may be considered a separate violation

Question 14

Mortgage Loan Advertising

Answer 14

Regulation N: Mortgage Acts and Practices - Advertising (MAP Rule) was introduced by CFPB. How the mortgage loans be advertised to the public

Question 15

FTC enforces

Answer 15

The FTC which enforces compliance with Regulation N, Regulation N requires all mortgage loans ads and commercial communication regarding a mortgage credit report to be retained for at least 24 months.

Question 16

Countervailing

Answer 16

Benefit is like a cost/benefit analysis

Question 17

Prohibited Advertising Part Three

Answer 17

No Express or implied misrepresentation may be made about

1. Product Association: It’s a misrepresentation to lead a consumer to believe the production or provider is affiliated with a government entity or organization.
2. Communication Source

Question 18

Ability to refinance or modify

Answer 18

The consumer’s likelihood of refinancing or modifying mortgage product or term including the consumer being pre-approved, must be clearly represented

Question 19

Communication Source

Answer 19

It is misrepresentation is from the consumer’s current mortgage lender when it is not

Question 19

Right to reside

Answer 19

The right to stay in dwelling , including for how long an under what conditions a consumer with a reverse mortgage may remain in the dwelling, must be clearly represented.

Question 20

Ability to qualify

Answer 20

The consumer’s likelihood of getting a mortgage loan must be clearly represented

Question 21

Counseling services or expert advice

Answer 21

Availability, type or substance of such services and the offeror’s qualifications to provide such services or advice must be clearly represented.

Question 22

Enforcing Regulation N

Answer 22

It applies to anyone who advertises mortgage products and is under the FTC’s enforcement authority, including

1. Mortgage Lenders
2. Mortgage Brokers
3. Mortgage Services
4. Ad Agencies
5. Lead Generators

Question 23

CFPB, FTC and Individual states

Answer 23

have authority to enforce Regulation N

Question 24

FTC Authority

Answer 24

Banks, federal credit unions and federal savings and loan institutions are not under the FTC’s enforcement authority.