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