Cfpb Quiz I Compliance Review

10 Questions | Total Attempts: 63

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Cfpb Quiz I Compliance Review

After completing the actual CFPB reading assignment; please read notes


Questions and Answers
  • 1. 
    The statutory frameworks for supervision of large depository institutions and their affiliates and for non-depository consumer financial service companies are largely the same,9 although the supervision authority for each is found in separate sections of the Act. The frameworks include: Pick the one that does not belong.
    • A. 

      Supervision

    • B. 

      To coordinate with other Federal and state regulators

    • C. 

      To use where possible publicly available information and existing reports to Federal or state regulators pertaining to supervised entities.

    • D. 

      Bankruptcy laws

  • 2. 
    The Bureau’s purpose is set forth by Section 1021 of the Act: PURPOSE.—The Bureau shall seek to implement and, where applicable, enforce Federal consumer financial law consistently for the purpose of ensuring that all consumers have access to markets for consumer financial products and services and that markets for consumer financial products and services are fair, transparent, and competitive
    • A. 

      True

    • B. 

      False

  • 3. 
    CFPB has responsibility to implement, examine for compliance with, and enforce “Federal consumer financial law.”4 Those laws include, among other things, Title X itself, which prohibits unfair, deceptive, or abusive acts and practices in connection with consumer financial products and services,5 and the following “enumerated consumer laws”6 and the implementing regulations.
    • A. 

      True

    • B. 

      False

  • 4. 
    The purpose of CFPB supervision, including examination, to: o assess compliance with Federal consumer financial laws, o obtain information about activities and compliance systems or procedures, and o detect and assess risks to consumers and to markets for consumer financial products and services;
    • A. 

      True

    • B. 

      False

  • 5. 
    An effective compliance management system should ensure that a supervised entity is responsive and responsible in handling consumer complaints and inquiries. Intelligence gathered from consumer contacts should be organized, retained, and used as part of an institution’s compliance management system.
    • A. 

      True

    • B. 

      False

  • 6. 
    What does ECOA stand for:
    • A. 

      Equal Credit Opportunity Act

    • B. 

      Equal Credit Opportunity Advice

    • C. 

      Everyone's Credit Opportunity Act

    • D. 

      None of the Above

  • 7. 
    An effective compliance management system commonly has four interdependent control components: which one is not included?
    • A. 

      Board and management oversight

    • B. 

      IRS Audit

    • C. 

      Compliance program

    • D. 

      Response to consumer complaints

    • E. 

      Compliance audit

  • 8. 
    Is this a true statement of CFPB's ECOA responsibility; CFPB to refer matters to DOJ whenever the CFPB “has reason to believe that one or more creditors has engaged in a pattern or practice of discouraging or denying applications for credit in violation of Section 1691(a)” of ECOA, which states ECOA’s basic prohibitions against discrimination.23 In matters that do not involve a pattern or practice of discouragement or denial, the CFPB may refer the matter to the DOJ whenever the agency has reason to believe that one or more creditors has violated Section 1691(a).24 Headquarters will handle referral of appropriate matters to DOJ.
    • A. 

      True

    • B. 

      False

  • 9. 
    An effective compliance management system should ensure that a supervised entity is responsive and responsible in handling consumer complaints and inquiries. Intelligence gathered from consumer contacts should be organized, retained, and used as part of an institution’s compliance management system.
    • A. 

      True

    • B. 

      False

  • 10. 
    Examiners will consider consumer complaints to determine whether: Which one does not belong.
    • A. 

      Consumer complaints and inquiries, regardless of where submitted, are appropriately recorded and categorized.

    • B. 

      Complaints and inquiries, whether regarding the entity or its service providers, are addressed and resolved promptly.

    • C. 

      Complaints that raise legal issues involving potential consumer harm from unfair treatment or discrimination, or other regulatory compliance issues, are appropriately escalated.

    • D. 

      Complaint data and individual cases drive adjustments to business practices as appropriate.

    • E. 

      Consumer complaints result in retrospective corrective action to correct the effects of the supervised entity’s actions when appropriate

    • F. 

      Weaknesses in the compliance management system exist, based on the nature or number of substantive complaints from consumers

    • G. 

      The nature of the settlement offered by the lender was over $100.

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