NCCO EXAM 2 ACTUAL EXAM
QUESTIONS WITH CORRECT
VERIFIED ANSWERS ALREADY
GRADED A+ LATEST VERSION
"What are the 3 different levels of liability for unauthorized transfers (access devices)? -
CORRECT ANSWER=> $50, $500 or unlimited:
Level 1-->$50- applies if the member notifies the CU of the loss or theft of an access device
within 2 business days of learning of the loss. Can only be held responsible for $50
Level 2-->$500-applies if the member does not notify CU within 2 business days, but notifies
within 60 days after periodic statement is sent. (Calculation is $50 (or amount of unauthorized
EFTs that occurred within 2 BD if less than $50) plus any transactions occurring between 2 days
and notice date up to $500)
Level 3-->Unlimited: applies if the member notifies CU more then 60 days after statement is
sent. (Calculation is anything occurring after 60 day period) plus any amounts owed under the
first 2 levels."
"What are the 2 levels of liability when NO access device is used? - CORRECT ANSWER=> 1)
Within 60 days after periodic statement is sent, no liability
2) Greater than 60 days after periodic statement, full liability for any transactions occurring after
60 days and before notice to the CU"
"Timelines for CU to complete its investigation: - CORRECT ANSWER=> No provisional credit: 10
business days (20 for new accounts)
PC: 45 days (90 days for new accounts, foreign transfers, POS debit card transactions)"
1|Page
,"Can credit unions require members to pay a loan via an EFT as part of the approval process? -
CORRECT ANSWER=> NO. Cannot require, but can incentivize in the form of lower rates or fees"
"What is a remittance transfer? - CORRECT 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? - CORRECT 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? -
CORRECT 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? - CORRECT 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 - CORRECT 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? - CORRECT ANSWER=> one-time ATM and
debit card transactions
NOT for payment of checks, ACH transfers, or recurring debit card transactions"
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, "Overdraft Opt-In: 4 part process? - CORRECT 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? - CORRECT ANSWER=> Valid until revoked by the member OR
the CU revokes it"
"Overdraft: Process to revoke? - CORRECT 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? - CORRECT
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? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER=> a) Share Draft
b) Money Market Share Accounts
c) Share
d) Term Share Accounts"
3|Page
QUESTIONS WITH CORRECT
VERIFIED ANSWERS ALREADY
GRADED A+ LATEST VERSION
"What are the 3 different levels of liability for unauthorized transfers (access devices)? -
CORRECT ANSWER=> $50, $500 or unlimited:
Level 1-->$50- applies if the member notifies the CU of the loss or theft of an access device
within 2 business days of learning of the loss. Can only be held responsible for $50
Level 2-->$500-applies if the member does not notify CU within 2 business days, but notifies
within 60 days after periodic statement is sent. (Calculation is $50 (or amount of unauthorized
EFTs that occurred within 2 BD if less than $50) plus any transactions occurring between 2 days
and notice date up to $500)
Level 3-->Unlimited: applies if the member notifies CU more then 60 days after statement is
sent. (Calculation is anything occurring after 60 day period) plus any amounts owed under the
first 2 levels."
"What are the 2 levels of liability when NO access device is used? - CORRECT ANSWER=> 1)
Within 60 days after periodic statement is sent, no liability
2) Greater than 60 days after periodic statement, full liability for any transactions occurring after
60 days and before notice to the CU"
"Timelines for CU to complete its investigation: - CORRECT ANSWER=> No provisional credit: 10
business days (20 for new accounts)
PC: 45 days (90 days for new accounts, foreign transfers, POS debit card transactions)"
1|Page
,"Can credit unions require members to pay a loan via an EFT as part of the approval process? -
CORRECT ANSWER=> NO. Cannot require, but can incentivize in the form of lower rates or fees"
"What is a remittance transfer? - CORRECT 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? - CORRECT 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? -
CORRECT 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? - CORRECT 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 - CORRECT 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? - CORRECT ANSWER=> one-time ATM and
debit card transactions
NOT for payment of checks, ACH transfers, or recurring debit card transactions"
2|Page
, "Overdraft Opt-In: 4 part process? - CORRECT 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? - CORRECT ANSWER=> Valid until revoked by the member OR
the CU revokes it"
"Overdraft: Process to revoke? - CORRECT 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? - CORRECT
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? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER=> a) Share Draft
b) Money Market Share Accounts
c) Share
d) Term Share Accounts"
3|Page
