CFPB MCT 3
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. correct
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 correct 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 correct 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 correct 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 correct 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 correct 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. correct 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 correct 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 correct 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 correct 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 correct answers b. False
Credit Card
26. An ad for a credit card states: "Financial Express now offers you a MasterCard
Credit Card at a 7.25 % annual rate with no balance transfer fee if balances are
transferred within next three months. Call now for more details and to apply!" Which of
the following statements is true?
A. The ad contains when finance charge will begin to accrue triggering term
B. The ad is missing the balance transfer fee disclosure
C. The ad contains the "call now for more details" triggering term
D. There are no TILA violations
E. None of the above correct answers E. None of the above
Credit Card
10. Which of the following statements are correct?
a. TILA bans issuance of unsolicited credit cards to consumer but not businesses
b. TILA bans telephone solicitation of credit cards
c. The TCPA & Telemarketing Sales Rule prohibit telemarketing of credit cards
d. All of the above
e. None of the above correct answers e. None of the above
Credit Card
13. The Fair Credit Billing Act (FCBA) permits credit cardholders to dispute suspected
billing errors What is the maximum number of days that a credit cardholder has to
dispute the billing error?
A. 30
B. 45
C. 60
D. 75 correct answers C. 60
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. correct
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 correct 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 correct 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 correct 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 correct 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 correct 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. correct 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 correct 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 correct 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 correct 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 correct answers b. False
Credit Card
26. An ad for a credit card states: "Financial Express now offers you a MasterCard
Credit Card at a 7.25 % annual rate with no balance transfer fee if balances are
transferred within next three months. Call now for more details and to apply!" Which of
the following statements is true?
A. The ad contains when finance charge will begin to accrue triggering term
B. The ad is missing the balance transfer fee disclosure
C. The ad contains the "call now for more details" triggering term
D. There are no TILA violations
E. None of the above correct answers E. None of the above
Credit Card
10. Which of the following statements are correct?
a. TILA bans issuance of unsolicited credit cards to consumer but not businesses
b. TILA bans telephone solicitation of credit cards
c. The TCPA & Telemarketing Sales Rule prohibit telemarketing of credit cards
d. All of the above
e. None of the above correct answers e. None of the above
Credit Card
13. The Fair Credit Billing Act (FCBA) permits credit cardholders to dispute suspected
billing errors What is the maximum number of days that a credit cardholder has to
dispute the billing error?
A. 30
B. 45
C. 60
D. 75 correct answers C. 60
