Udaap Exam - Unfair, Deceptive, Or Abusive Acts And Practices

10 Questions | By Webero | Updated: Mar 22, 2022 | Attempts: 1047

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In the United States of America, Unfair, Deceptive, Or Abusive Acts And Practices is a type of bank regulation issued under Federal Reserve Regulations. As the name suggests, UDAAP covers anything regarding unfair, deceptive or abusive acts in banking. Take this quiz about UDAAP to learn more about this act.

Questions and Answers

1.

Unfair, deceptive or abusive acts and practices (UDAAP) can cause significant financial injury to consumers, erode consumer confidence and undermine the financial marketplace.
- A.
  
  True
- B.
  
  False
2.

The Consumer Financial Protection Bureau (CFPB) has both rule-making authority and supervisory authority for detecting, assessing and preventing unfair, deceptive or abusive acts and practices
- A.
  
  True
- B.
  
  False
3.

Which of the following may be considered unfair, deceptive or abusive?:
- A.
  
  A material misrepresentation or omission of information that is likely to mislead a consumer.
- B.
  
  An interference with the ability of a consumer to understand the term or condition that takes unreasonable advantage of the consumer’s lack of knowledge.
- C.
  
  A substantial injury to a consumer that cannot be reasonably avoided and that is not outweighed by countervailing benefits to the consumer.
- D.
  
  All of the above.
4.

Pursuant to the Dodd-Frank Act an act or practice is unfair when:
- A.
  
  It causes or is likely to cause substantial injury to consumers
- B.
  
  The injury is not reasonably avoidable by consumers
- C.
  
  The injury is not outweighed by countervailing benefits to consumers or to competition
- D.
  
  All of the above
5.

Pursuant to the Dodd-Frank Act, an act or practice is deceptive when:
- A.
  
  The act of practice misleads or is likely to mislead the consumer
- B.
  
  The consumer's interpretation is reasonable under the circumstance
- C.
  
  The misleading act or practice is material
- D.
  
  All of the above
6.

Pursuant to the Dodd-Frank Act an act or practice is abusive when it materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service.
- A.
  
  True
- B.
  
  False
7.

Under the Dodd-Frank Act it is NOT an abusive act or practice if you take unreasonable advantage of a consumer's lack of understanding of the material risks, costs or conditions of the product or service.
- A.
  
  True
- B.
  
  False
8.

Pursuant to the Dodd-Frank Act, an abuse that takes unreasonable advantage includes the following:
- A.
  
  A consumer's lack of understanding of the material risks, costs or condition of the product or service
- B.
  
  A consumer's inability to protect his or her interests in selecting or using a consumer financial product or service
- C.
  
  A consumer's reasonable reliance on a covered person to act in his or her interest
- D.
  
  All of the above
9.

Weber Olcese shall not collect a debt that is not expressly authorized by an agreement that created the debt or was permitted by law.
- A.
  
  True
- B.
  
  False
10.

Weber Olcese is permitted to falsely represent the character, amount or legal status of a debt.
- A.
  
  True
- B.
  
  False