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

10 Questions | Total Attempts: 571

SettingsSettingsSettings
Please wait...
Unfair, Deceptive, Or Abusive Acts And Practices (Udaap) Exam

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