CFPB Regulations

Question 1

What is the private organization that provides customers with information about businesses, including complaint history, and a rating system based on their ethics and performance

Answer 1

BBB (Better Business Bureau)

Question 2

What is the recommended maximum time for a complaint to get a response per the BBB

Answer 2

14 days

Question 3

After how many days of not responding to a complaint does your rating go down with the BBB

Answer 3

30 days

Question 4

What US government agency that protects consumers from unfair treatment by financial institutions

Answer 4

CFPB (Consumer Financial Protection Bureau)

Question 5

Among all the bureaus and agencies that deal with financial institutions and consumer complaints, which organization has the most expansive jurisdiction

Answer 5

CFPB

Question 6

Which administration deals specifically regulates credit unions specifically

Answer 6

NCUA (National Credit Union Association)

Question 7

What CFPB regulation specifically deals with ensuring fair and equitable access to credit for all consumers, regardless of their personal characteristics

Answer 7

Regulation B

Question 8

What is the act that enforces Regulation B under CFPB

Answer 8

Equal Credit Opportunity Act

Question 9

Under Regulation B of the CFPB, creditors must provide notice of action taken for any credit application within how many days of receiving a completed application

Answer 9

30 days

Question 10

Breaking this regulation of the CFPB results in a fine of $500,000 or 1% of the creditor’s net worth, whichever number is lesser

Answer 10

Regulation B

Question 11

This regulation establishes the basic framework for the rights, liabilities, and responsibilities of participants in electronic fund transfer (EFT) systems

Answer 11

Regulation E

Question 12

Regulation E indicates that financial institutions must provide clear and conspicuous disclosures to consumers regarding terms and conditions of EFT services, fees associated with EFTs, consumer rights and responsibilities, and error resolution procedures

What is the latest date that this information can be provided without incurring a violation of Reg E

A) Before the account is approved
B) Before the account is opened
C) Before the first EFT transaction
D) Within 30 days of the account opening

Answer 12

C

Question 13

Reg E protects consumers for up to different dollar amounts of unauthorized transactions based on how quickly they report the transaction. If a consumer reports an unauthorized transaction between 3 and 60 days, how much of the transaction is the consumer liable for

Answer 13

500 dollars

Question 14

Reg E protects consumers for up to different dollar amounts of unauthorized transactions based on how quickly they report the transaction. If a consumer reports an unauthorized transaction within 2 days, how much of the transaction is the consumer liable for

Answer 14

50 dollars

Question 15

Reg E protects consumers for up to different dollar amounts of unauthorized transactions based on how quickly they report the transaction. If a consumer reports an unauthorized transaction after 60 days, how much of the transaction is the consumer liable for

Answer 15

potentially all of it

Question 16

Reg E says financial institutions must investigate and resolve errors reported by consumers within specific timeframes. How many days does an institution have to ACKNOWLEDGE the error claim to the customer

Answer 16

10 days

Question 17

Reg E says financial institutions must investigate and resolve errors reported by consumers within specific timeframes. How many days does an institution have to RESOLVE the error claim with the customer

Answer 17

45 days

Question 18

Reg E says financial institutions must investigate and resolve errors reported by consumers within specific timeframes. How many days does an institution have to RESOLVE the error claim with the customer for a NEW account, foreign transaction, or POS system.

Answer 18

90 days

Question 19

This CFPB regulation protects the privacy of consumer financial information

Answer 19

Regulation P

Question 20

The act that actually implements CFPB Regulation P

Answer 20

Gramm-Leach-Bliley Act (GLBA)

Question 21

the GLBA also requires financial institutions to implement appropriate safeguards to protect the security and confidentiality of customer information - which of these is not a part of the act

A) They must notify what nonpublic personal information the institution collects
B) They must notify how the institution protects this information
C) They must not keep non public personal information for longer than 90 days unless it is part of a user identification process
D) They must notify whether and how the institution shares this information with nonaffiliated third parties
E) They must notify the consumer’s right to opt-out of certain information sharing practices

Answer 21

C

Question 22

The largest CFPB penalty in history was against this bank for violating Regulation P in Dec of 2022 - it involved 2 billion dollars of restitution payments and 1.7 billion dollars of civil penalties

Answer 22

Wells Fargo

Question 23

This CFPB regulation covers a financial institution’s responsibility to be truthful about its lending to consumers

Answer 23

Regulation Z

Question 24

The act that specifically implements CFPB Regulation Z

Answer 24

TILA (Truth in Lending Act)

Question 25

Regulation Z applies to various types of consumer credit transactions. Which of these does it NOT cover A) Home mortgages B) Home equity lines of credit C) Reverse mortgages D) Business loans

Answer 25

D

Question 26

Regulation Z only protects one of these consumer credit transactions, which one is it: A) Business loans B) Agricultural loans C) Installment loans D) Commercial loans

Answer 26

C

Question 27

Regulation Z mandates that creditors provide clear and conspicuous disclosures to consumers regarding interest rates, finance charges, amount financed, total of payments, payment schedule, late payment fees. By which point does the creditor have to provide this information: A) Before a consumer applies for credit B) During the application process for the credit C) Once the application is approved but before the credit is extended D) Once the credit is extended but before the first interest payment

Answer 27

C

Question 28

Under Reg Z, for certain home equity loans and refinances, consumers have a three-day right to cancel the transaction. What is this called?

Answer 28

Right of Rescission

Question 29

The most recent change to Regulation Z was a cap on credit card late fees for large credit card issuers, which was set to this amount

Answer 29

8 dollars

Question 30

Which regulation, enforced by the CFPB, says the following: - must not engage in unfair, deceptive or abusive practices in their interaction with customers - must clearly disclose all fees and terms associated with their product and service to the customer

Answer 30

UDAAP

Question 31

What does UDAAP stand for

Answer 31

Unfair, Deceptive or Abuse Acts or Practices

Question 32

This law grants the Federal Deposit Insurance Corporation (FDIC) authority to assess civil money penalties against insured depository institutions (like banks) and their related parties

Answer 32

Federal Deposit Insurance Act (FDI)

Question 33

This law empowers the CFPB to monitor risks in consumer financial products - institutions must integrate complaint data into compliance programs to mitigate risk. Violations can result in fines, legal actions, or additional regulatory scrutin

Answer 33

Dodd-Frank