NCCO CERTIFIED QUALITY EXAM 3 WITH QUESTIONS WITH DETAILED
CORRECT ANSWERS
Generally, a member must receive open-end account opening
disclosures prior to the member being able to make a transaction on
an open-end line of credit account.
A. True, account opening disclosures must be provided before
member makes the first transaction.
B. False, account opening disclosures must be provided within 30
days of the first transaction.
A. True, account opening disclosures must be provided before
member makes the first transaction.
"The account opening disclosures must be provided to the member
prior to the first transaction being conducted"
A credit union is not considered a "debt collector" for the Fair Debt
Collection Practices Act if it is collecting on its own debts using the
credit union's name in its collection information.
A. True, a "debt collector" is any person who regularly collects, or
attempts to collect, consumer debts for another person or institution
or uses some name other than its own when collecting its own
consumer debts.
,B. False, a "debt collector" is any person who regularly collects, or
attempts to collect, consumer debts, including a credit union
collecting on its own debts under its own name.
B. False, a "debt collector" is any person who regularly collects, or
attempts to collect, consumer debts, including a credit union
collecting on its own debts under its own name.
Lists definition of debt collector
Which of the following accurately describes a credit union's
obligation to reevaluate APR increases on a credit card not due to a
fluctuation in an index?
A. A credit union is only required to reevaluate the increase once,
and that evaluation must be completed within one year of the
effective date of the increase.
B. A credit union is required reevaluate the increase every six months
until the APR is reduced to the previous level or lower.
C. A credit union is required to reevaluate the increase every year
until the APR is reduced to the previous level or lower.
D. A credit union is only required to reevaluate an increase based on
an individual's creditworthiness. It is never required to reevaluate
increases done on a portfolio-wide basis.
B. A credit union is required reevaluate the increase every six months
until the APR is reduced to the previous level or lower.
,The Service members Civil Relief Act (SCRA) interest rate cap only
applies to loans entered into prior to military service. For a member's
existing credit card account this means the interest rate cap applies
to both any existing balance and new purchases after military service
began.
A. True, because the credit card account was opened prior to military
service.
B. True, but the credit union could require the member to open a
new credit card account so it can charge a higher interest rate.
C. False, the interest rate cap only applies to closed-end loans such
as auto loans or mortgages.
D. False, the interest rate cap would only apply to the member's
existing credit card balance as those transactions were conducted
prior to military service.
D. False, the interest rate cap would only apply to the member's
existing credit card balance as those transactions were conducted
prior to military service.
On Monday, John Member applies to ABC Federal Credit Union for a
closed-end mortgage loan that is covered by the TILA-RESPA
Integrated Disclosure rule. John Member provides his name, his
income, his social security number, and the amount of mortgage
loan he is seeking. On Tuesday, John provides ABC Federal Credit
Union with the address and estimated value of the property he
wants to buy. By what day does ABC Federal Credit Union need to
mail John a Loan Estimate?
, A. On Thursday, the third business day after John Member initiated
an application.
B. On Friday, the third business day after John Member completed
an application.
C. ABC Federal Credit Union does not need to provide John Member
with a Loan Estimate until his application is considered complete
based on the credit union's internal policies and procedures.
D. ABC Federal Credit Union does not need to provide a Loan
Estimate until it determines whether John Me
B. On Friday, the third business day after John Member completed
an application.
On Friday at 4:39 PM, Marketing Mary brings Compliance Carl an ad
to review. The Marketing Team wants to run a "Drive into Spring"
campaign for special rates on new automobiles. Which terms would
trigger additional disclosures in the ad? Choose the best answer.
A. Amount or percentage of down payment
B. Minimum automobile value
C. Amount of the finance charge
D. All of the above
E. A and c only
E. A and c only
CORRECT ANSWERS
Generally, a member must receive open-end account opening
disclosures prior to the member being able to make a transaction on
an open-end line of credit account.
A. True, account opening disclosures must be provided before
member makes the first transaction.
B. False, account opening disclosures must be provided within 30
days of the first transaction.
A. True, account opening disclosures must be provided before
member makes the first transaction.
"The account opening disclosures must be provided to the member
prior to the first transaction being conducted"
A credit union is not considered a "debt collector" for the Fair Debt
Collection Practices Act if it is collecting on its own debts using the
credit union's name in its collection information.
A. True, a "debt collector" is any person who regularly collects, or
attempts to collect, consumer debts for another person or institution
or uses some name other than its own when collecting its own
consumer debts.
,B. False, a "debt collector" is any person who regularly collects, or
attempts to collect, consumer debts, including a credit union
collecting on its own debts under its own name.
B. False, a "debt collector" is any person who regularly collects, or
attempts to collect, consumer debts, including a credit union
collecting on its own debts under its own name.
Lists definition of debt collector
Which of the following accurately describes a credit union's
obligation to reevaluate APR increases on a credit card not due to a
fluctuation in an index?
A. A credit union is only required to reevaluate the increase once,
and that evaluation must be completed within one year of the
effective date of the increase.
B. A credit union is required reevaluate the increase every six months
until the APR is reduced to the previous level or lower.
C. A credit union is required to reevaluate the increase every year
until the APR is reduced to the previous level or lower.
D. A credit union is only required to reevaluate an increase based on
an individual's creditworthiness. It is never required to reevaluate
increases done on a portfolio-wide basis.
B. A credit union is required reevaluate the increase every six months
until the APR is reduced to the previous level or lower.
,The Service members Civil Relief Act (SCRA) interest rate cap only
applies to loans entered into prior to military service. For a member's
existing credit card account this means the interest rate cap applies
to both any existing balance and new purchases after military service
began.
A. True, because the credit card account was opened prior to military
service.
B. True, but the credit union could require the member to open a
new credit card account so it can charge a higher interest rate.
C. False, the interest rate cap only applies to closed-end loans such
as auto loans or mortgages.
D. False, the interest rate cap would only apply to the member's
existing credit card balance as those transactions were conducted
prior to military service.
D. False, the interest rate cap would only apply to the member's
existing credit card balance as those transactions were conducted
prior to military service.
On Monday, John Member applies to ABC Federal Credit Union for a
closed-end mortgage loan that is covered by the TILA-RESPA
Integrated Disclosure rule. John Member provides his name, his
income, his social security number, and the amount of mortgage
loan he is seeking. On Tuesday, John provides ABC Federal Credit
Union with the address and estimated value of the property he
wants to buy. By what day does ABC Federal Credit Union need to
mail John a Loan Estimate?
, A. On Thursday, the third business day after John Member initiated
an application.
B. On Friday, the third business day after John Member completed
an application.
C. ABC Federal Credit Union does not need to provide John Member
with a Loan Estimate until his application is considered complete
based on the credit union's internal policies and procedures.
D. ABC Federal Credit Union does not need to provide a Loan
Estimate until it determines whether John Me
B. On Friday, the third business day after John Member completed
an application.
On Friday at 4:39 PM, Marketing Mary brings Compliance Carl an ad
to review. The Marketing Team wants to run a "Drive into Spring"
campaign for special rates on new automobiles. Which terms would
trigger additional disclosures in the ad? Choose the best answer.
A. Amount or percentage of down payment
B. Minimum automobile value
C. Amount of the finance charge
D. All of the above
E. A and c only
E. A and c only
