NAFCU NCCO EXAM 1 PREP
QUESTIONS WITH SOLUTIONS
LATEST VERSION 2025 GRADED A+
◉What types of transaction are covered transfers, meaning electronic
fund transfers (EFT) ? . Answer: Automatic Transfers within a credit
union
◉What is the timing requirement for sending peridoic statements for
Reg E?
Is there a difference in timing depending on whether an EFT occured or
not? . Answer: Depends on whether EFT occured or not
EFT - Monthly
No EFT (i.e. no debit card just a share account) - Quarterly
◉What triggers a change in term notification? If you must send one,
what is the timing requirement? . Answer: Must be given at least 21 days
prior to effective date of change
-> increase fees
-> increases potential liability for members
-> remove types of funds transfer options under account
, -> increases the limitations on the frequency or dollar amount of transfer
◉Which transactions are not considered unauthorized transfers? .
Answer: -> if member had fraudulent intent
-> if member provides authroization and they exceed the authrority
given by the member
◉What are the different liability levels for unauthorized transfers? For
each when does the member need to provide notice and how much is the
member liable for ? . Answer: $50 - if consumer notices the CU within 2
buisness days after learning of the loss or theft of access device
$500 - after two days
unlimited- if member provides authorization to make transfer from
account
◉What are the timelines the credit union has for completion
investigation . Answer: 10 buisiness days - in general
45 day period - if unable to resolve in 10 (must provide provisional
credits)
20 days - if new account and if error is in 30 days after first depsoit to
account
90 days - if transaction not initiated within a state (recredit rules apply)
Notice (if no error) written explanation; debit provisional credit [notify
and amount of debit]
QUESTIONS WITH SOLUTIONS
LATEST VERSION 2025 GRADED A+
◉What types of transaction are covered transfers, meaning electronic
fund transfers (EFT) ? . Answer: Automatic Transfers within a credit
union
◉What is the timing requirement for sending peridoic statements for
Reg E?
Is there a difference in timing depending on whether an EFT occured or
not? . Answer: Depends on whether EFT occured or not
EFT - Monthly
No EFT (i.e. no debit card just a share account) - Quarterly
◉What triggers a change in term notification? If you must send one,
what is the timing requirement? . Answer: Must be given at least 21 days
prior to effective date of change
-> increase fees
-> increases potential liability for members
-> remove types of funds transfer options under account
, -> increases the limitations on the frequency or dollar amount of transfer
◉Which transactions are not considered unauthorized transfers? .
Answer: -> if member had fraudulent intent
-> if member provides authroization and they exceed the authrority
given by the member
◉What are the different liability levels for unauthorized transfers? For
each when does the member need to provide notice and how much is the
member liable for ? . Answer: $50 - if consumer notices the CU within 2
buisness days after learning of the loss or theft of access device
$500 - after two days
unlimited- if member provides authorization to make transfer from
account
◉What are the timelines the credit union has for completion
investigation . Answer: 10 buisiness days - in general
45 day period - if unable to resolve in 10 (must provide provisional
credits)
20 days - if new account and if error is in 30 days after first depsoit to
account
90 days - if transaction not initiated within a state (recredit rules apply)
Notice (if no error) written explanation; debit provisional credit [notify
and amount of debit]
