CFPB MCT 3 Exam Questions with Correct Answers Latest Version 2025
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. - Answers A. Credit the
balance to the account and refund the remaining credit balance within 7 days of receiving a written
request.
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 - Answers a. True
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 - Answers A. A pre - approval offer touts a " 0 % APR and No Fee " but charges $ 150
processing fee if approved
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 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 - Answers b. $50
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 - Answers d. None of the above
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 - Answers c. Require repayment of the account balance by
amortizing the balance over a five year period
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.
, c. It must notify the consumer that the credit limit on the account has been or will be decreased
d. All of the above. - Answers d. All of the above.
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 - Answers A. Unsolicited issuance of credit cards
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 - Answers D. All of the above
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 - Answers A. True
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
a. True
b. False - Answers b. False
Credit Card
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. - Answers A. Credit the
balance to the account and refund the remaining credit balance within 7 days of receiving a written
request.
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 - Answers a. True
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 - Answers A. A pre - approval offer touts a " 0 % APR and No Fee " but charges $ 150
processing fee if approved
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 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 - Answers b. $50
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 - Answers d. None of the above
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 - Answers c. Require repayment of the account balance by
amortizing the balance over a five year period
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.
, c. It must notify the consumer that the credit limit on the account has been or will be decreased
d. All of the above. - Answers d. All of the above.
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 - Answers A. Unsolicited issuance of credit cards
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 - Answers D. All of the above
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 - Answers A. True
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
a. True
b. False - Answers b. False
Credit Card
