NCCO EXAM Q&A
What is a remittance transfer? - ANSWER-Electronic transfer of funds requested by a
sender (for personal, family or household purposes) to a recipient (must be located in a
foreign country) by a remittance transfer provider
What is a remittance transfer provider? - ANSWER-person providing remittance
transfers in the "normal course of business".
When is a remittance transfer provider NOT providing RTs in the normal course of
business? - ANSWER-If the RT provides 500 or fewer transfers in the prior calendar
year and 500 or less in the current calendar year
Prepaid Accounts: What is the function test? Examples? - ANSWER-Function Test:
-issued on a prepaid basis or capable of being loaded with funds after to conduct
transfers at multiple merchants/P2P transfers;
-primary function of the account is to conduct transfers with multiple, unaffiliated
merchants, at ATMs or for (P2P) transfers; and
-Is not a checking account, share draft account or negotiable order of withdrawal
account.
Examples:
-Payroll card accounts (EFTs of salary/comp provided on a recurring basis
-Government benefit accounts
-accounts marketed or labeled as prepaid, can be redeemed at multiple ATM/merchants
-accounts meeting the function test
Error resolution: Prepaid Accounts - ANSWER-Generally, error resolution/liability rules
apply.
BUT- do not apply if there isn't a identity verification process to use prepaid account
When must consumers opt-in to have overdrafts paid? - ANSWER-one-time ATM and
debit card transactions
NOT for payment of checks, ACH transfers, or recurring debit card transactions
Overdraft Opt-In: 4 part process? - ANSWER-1) CU must send written opt-in notice
describing CU's ODP program and any potential fees
2) CU must provide a reasonable chance to opt-in
3) Member affirmatively consents (aka opt-in)
4) CU provides written/electronic confirmation of member consent and notifies member
of right to revoke
, How long is overdraft opt-in valid? - ANSWER-Valid until revoked by the member OR
the CU revokes it
Overdraft: Process to revoke? - ANSWER-Can occur at any time. CU must allow the
same methods for revocation as allowed for consent.
ODP: Can CUs offer different account terms/features to members that don't opt in? -
ANSWER-No. Must treat members the same regardless of whether they opt into ODP
Can CUs condition other OD services on the member's decision to opt-in? - ANSWER-
Can't condition other ODP services (ex. for checks, recurring debits, ACH) on consumer
opt-in for debit card/ATM transactions
TISA: What types of accounts are covered? - ANSWER-Deposit account
Transaction accounts
Certificates
IRAs
Must be a consumer purpose account held by a natural person (not corporate, formal
trust or decedent accounts)
What are the permissible names for these accounts in CU land?
a) Checking
b) Money Market
c) Savings
d) Certificate - ANSWER-a) Share Draft
b) Money Market Share Accounts
c) Share
d) Term Share Accounts
What is an advertisement under TISA? - ANSWER-commercial message that appears
in any medium & that promotes directly or indirectly the availability of, or a deposit in, a
share account
What types of advertisements are exempt from some of the
advertising rules? - ANSWER-TV, Radio, Billboard are exempt from trigger term
disclosures (APY, and bonus disclosures)
Indoor signs are exempt from trigger term disclosures and bonus disclosures.
If state "rate of return", must state it as APY and include a statement about contacting
employee for further details.
TISA-Trigger Terms? - ANSWER-APY, Statement of a Bonus
What is a remittance transfer? - ANSWER-Electronic transfer of funds requested by a
sender (for personal, family or household purposes) to a recipient (must be located in a
foreign country) by a remittance transfer provider
What is a remittance transfer provider? - ANSWER-person providing remittance
transfers in the "normal course of business".
When is a remittance transfer provider NOT providing RTs in the normal course of
business? - ANSWER-If the RT provides 500 or fewer transfers in the prior calendar
year and 500 or less in the current calendar year
Prepaid Accounts: What is the function test? Examples? - ANSWER-Function Test:
-issued on a prepaid basis or capable of being loaded with funds after to conduct
transfers at multiple merchants/P2P transfers;
-primary function of the account is to conduct transfers with multiple, unaffiliated
merchants, at ATMs or for (P2P) transfers; and
-Is not a checking account, share draft account or negotiable order of withdrawal
account.
Examples:
-Payroll card accounts (EFTs of salary/comp provided on a recurring basis
-Government benefit accounts
-accounts marketed or labeled as prepaid, can be redeemed at multiple ATM/merchants
-accounts meeting the function test
Error resolution: Prepaid Accounts - ANSWER-Generally, error resolution/liability rules
apply.
BUT- do not apply if there isn't a identity verification process to use prepaid account
When must consumers opt-in to have overdrafts paid? - ANSWER-one-time ATM and
debit card transactions
NOT for payment of checks, ACH transfers, or recurring debit card transactions
Overdraft Opt-In: 4 part process? - ANSWER-1) CU must send written opt-in notice
describing CU's ODP program and any potential fees
2) CU must provide a reasonable chance to opt-in
3) Member affirmatively consents (aka opt-in)
4) CU provides written/electronic confirmation of member consent and notifies member
of right to revoke
, How long is overdraft opt-in valid? - ANSWER-Valid until revoked by the member OR
the CU revokes it
Overdraft: Process to revoke? - ANSWER-Can occur at any time. CU must allow the
same methods for revocation as allowed for consent.
ODP: Can CUs offer different account terms/features to members that don't opt in? -
ANSWER-No. Must treat members the same regardless of whether they opt into ODP
Can CUs condition other OD services on the member's decision to opt-in? - ANSWER-
Can't condition other ODP services (ex. for checks, recurring debits, ACH) on consumer
opt-in for debit card/ATM transactions
TISA: What types of accounts are covered? - ANSWER-Deposit account
Transaction accounts
Certificates
IRAs
Must be a consumer purpose account held by a natural person (not corporate, formal
trust or decedent accounts)
What are the permissible names for these accounts in CU land?
a) Checking
b) Money Market
c) Savings
d) Certificate - ANSWER-a) Share Draft
b) Money Market Share Accounts
c) Share
d) Term Share Accounts
What is an advertisement under TISA? - ANSWER-commercial message that appears
in any medium & that promotes directly or indirectly the availability of, or a deposit in, a
share account
What types of advertisements are exempt from some of the
advertising rules? - ANSWER-TV, Radio, Billboard are exempt from trigger term
disclosures (APY, and bonus disclosures)
Indoor signs are exempt from trigger term disclosures and bonus disclosures.
If state "rate of return", must state it as APY and include a statement about contacting
employee for further details.
TISA-Trigger Terms? - ANSWER-APY, Statement of a Bonus
