☑️ Chapter 8: Federal Privacy Protection and Consumer Identification Laws

Question 1

Fair Credit Reporting Act
(FCRA): Regulation V:
Regulation V implements the Fair Credit Reporting Act, a federal law dealing with the GRANTING of credit, ACCESS to credit information, the Rights of debtors, and the Responsibilities of creditors. A ______ is defined as “a person who regularly extends consumer credit that is subject to a finance charge or is paid by written agreement in more than four installments, and to whom the obligation is originally payable.

Answer 1

A. Creditor

Question 2

Fair Credit Reporting Act
(FCRA) : Regulation V:
The Fair Credit Reporting Act, implemented in 1970, was the first legislation to address ____. It is important to remember that when this legislation was enacted, the nation had NOT YET fallen victim to the current level of identity theft.
Americans were LESS concerned about their identity being STOLEN and MORE concerned about ACCESS to their personal credit information.

Answer 2

A. Credit Reporting

Question 3

Fair Credit Reporting Act
(FCRA): Regulation V:
Consumer Rights:
The Fair Credit Reporting Act provides consumers with the rights to:
• An ______ notice.
• A _____ of the consumer credit report.
• Request their credit _____.
• _______ incomplete or inaccurate information.
• Limit ______ offers.
As of September 21, 2018, pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act, nationwide consumer reporting agencies are now required to provide “______” free of charge to consumers.

Answer 3

A. Adverse Action
B. Copy
C. Score
D. Dispute
E. Pre-Screened
F. National Security Freezes

Question 4

Fair Credit Reporting Act
(FCRA): Regulation V:
Credit Scores, and Credit Reports:
The Consumer Financial Protection Bureau defines the difference between a credit score and a credit report:
A credit ______ is a statement that has information about vour credit ____ and current credit _____ such as loan paying history and the status of your credit accounts. Credit reports often include:
• Personal information
• Current and historical credit accounts, including the type of account (mortgage, installment, revolving, etc.)
• Public records
• Inquiries

Answer 4

A. Report
B. Activity
C. Situation

Question 5

Fair Credit Reporting Act
(FCRA): Regulation V:
Credit Scores, and Credit Reports:
The Consumer Financial Protection Bureau (CFPB) defines the difference between a credit report and a credit score:
A credit _____ predicts how likely vou are to _____ back a loan on time. A scoring model uses information from your credit report to create a credit score. Some factors that make up a typical credit score include:
• Bill-paying history
• Current unpaid debt
• Number and type of loan accounts you have
• Length of time loan accounts are open
• Available credit currently utilized
• New applications for credit
• Debt sent to collection, foreclosure, or bankruptcy (and when this event occurred)

Answer 5

A. Score
B. Pay

Question 6

Fair Credit Reporting Act
(FCRA): Regulation V:
Adverse Action Notice:
Any entity that uses a credit report or another type of consumer report to deny an application for credit, insurance, or employment-or to take another adverse action–must provide the consumer with the name, address, and phone number of the _____ that provided the information. The requirements under the FCRA differ somewhat from those under the Equal Credit Opportunity Act (ECOA), although both laws can be satisfied with a single _____ notice.

Answer 6

A. Agency
B. Adverse Action

Question 7

Fair Credit Reporting Act
(FCRA): Regulation V:
Title ____ of the Dodd-Frank Wall Street Reform and Consumer Protection Act, amended the Fair Credit Reporting Act (FCRA) to require a creditor to provide a consumer with a written or electronic _____ of the numeric credit score used in taking any adverse action, including a _____ notice.

Answer 7

A. X
B. Disclosure
C. Risk-Based Pricing

Question 8

Fair Credit Reporting Act
(FCRA): Regulation V:
Dispute Incomplete or
Inaccurate Information:
Consumers have the right to ___ any incomplete or inaccurate information found in their credit report.
The consumer reporting agency must correct or delete inaccurate, incomplete, or unverifiable information.
‘The act of disputing a trade line does not require its removal, only its investigation.

Answer 8

A. Dispute

Question 9

Fair Credit Reporting Act
(FCRA): Regulation V:
Limit Prescreened Offers:
Consumers may choose to limit “prescreened” offers of credit and insurance based on information in their credit report. _______ prescreened offers for credit and insurance must include a toll-free phone number to be removed from the lists on which these offers are based.

Answer 9

A. Unsolicited

Question 10

Fair Credit Reporting Act
(FCRA): Regulation V:
Consumer Reporting Agency Obligations:
In May 2018, Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act. Section _____ of the Act amended the FCRA with regard to fraud alerts, credit freezes and protecting credit records of minors. Under the Fair Credit Reporting Act, consumer reporting agencies:
• May NOT report _____ negative information.
In most cases, a consumer reporting agency may not report negative credit information that is more than seven years old or bankruptcies that are more than ten years old. There is no time limit on the reporting of criminal convictions [see 15 U.S.C.
§1681c).
• Must limit access to a credit report. A consumer reporting agency may provide information to people with a legitimate business NEED -usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a VALID need for access.

Answer 10

A. Section 301
B. Outdated

Question 11

Fair Credit Reporting Act
(FCRA): Regulation V:
Consumer Reporting Agency Obligations:
In May 2018, Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act. Section 301 of the Act amended the FCRA with regard to fraud alerts, credit freezes and protecting credit records of minors. Under the Fair Credit Reporting Act, consumer reporting agencies:
• May NOT give out consumer credit information to an employer, or a potential employer, without ______ consent given by the consumer.
• Must include INITIAL fraud alert in a consumer’s file for a minimum of ____ year.

Answer 11

A. Written
B. One

Question 12

Fair Credit Reporting Act
(FCRA): Regulation V:
Consumer Reporting Agency Obligations:
In May 2018, Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act. Section 301 of the Act amended the FCRA with regard to fraud alerts, credit freezes and protecting credit records of minors. Under the Fair Credit Reporting Act, consumer reporting agencies:
• Must provide a national credit freeze free of charge to consumers [see U.S.C. $1681c-1].
• MUST provide the following DISCLOSURES:
o Summary of ______ Rights - summarizes a consumer’s right to obtain and dispute information in consumer reports and to obtain credit scores.
o Summary of Consumer _____ Rights
- summarizes a consumer’s rights when a victim of identity theft.
o Notice of National ______ Right
- new disclosure that must be provided when consumer receives either of the above summaries.

Answer 12

A. Consumer
B. Identity Theft
C. Security Freeze

Question 13

Fair and Accurate Credit Transactions Act (FACTA):
Access to Credit Reports:
The FCRA gave consumers the right to ask for a FREE copy of their credit score from any consumer reporting agencies that create or distribute scores used in residential real property loans but PERMITTED reporting agencies to CHARGE a ___ for the score. Prior to the passage of the FACT Act, consumers had to _____ to get a copy of their credit report from each of the three national credit bureaus:
a.
b.
c.

Answer 13

A. Pay
B. Fee
C. Equifax
D. Experian
E. TransUnion

Question 14

Fair and Accurate Credit Transactions Act (FACTA):
Access to Credit Reports:
The FCRA only allowed consumers a _____ copy of their credit report from a consumer credit reporting agency under these circumstances:
• The information in a credit report resulted in ______.
• The consumer was a victim of identity theft and a ______ was inserted in the credit report.
• The credit report contains inaccurate information as a result of _____.
• The consumer is on public assistance or is ______.

Answer 14

A. Free
B. Adverse Action
C. Fraud Alert
D. Fraud
E. Unemployed

Question 15

Fair and Accurate Credit Transactions Act (FACTA):
Access to Credit Reports:
One of the major provisions of the FACT Act is to allow consumers easier _____ to their credit reports as a way to spot possible identity theft and to allow dispute of inaccurate information. With the passage of the FACT Act, consumers applying for home loans are now required to receive the ________ Disclosure notice, which explains their rights. The FACT Act allows consumers to request and obtain a free copy of their credit report once every ____ months from each of these credit bureaus by contacting a centralized website, maintained in cooperation with the Federal Trade Commission.

Answer 15

A. Access
B. Home Loan Applicant Credit Score Information
C. 12

Question 16

Fair and Accurate Credit Transactions Act (FACTA):
Fraud Alerts and Freezes:
If a consumer believes he has been a victim of identity theft, the FACT Act allows the consumer to contact the credit bureau and place a _____.
If an MLO is running a credit report and sees a fraud alert, he must contact the person whose ______ is on the account at the number provided to the credit bureau or take other reasonable steps to ensure that the person applying for a mortgage loan is not really an identity thief. The minimum timeframe that a consumer reporting agency must include a fraud alert in a consumer’s file is ____ year.

Answer 16

A. Fraud Alert
B. Name
C. One

Question 17

Fair and Accurate Credit Transactions Act (FACTA):
Fraud Alerts and Freezes:
The FACT Act also allows consumers to place a credit freeze, free of charge, to prevent the information from showing on a credit report. When applying for a loan, the consumer may then temporarily “______” the credit report by contacting the credit bureau that is “_____” the report to obtain a temporary password, which allows a credit reporting agency to access the report.
Recent amendments have given very specific time deadlines for credit bureaus to place and remove credit freezes when requested by the consumer.

Answer 17

A. Thaw
B. Freezing

Question 18

Fair and Accurate Credit Transactions Act (FACTA):
Fraud Alerts and Freezes:
Finally, the Act allows members of the _______ who are deploying overseas to place a credit freeze, thereby making fraudulent applications for credit more difficult.

Answer 18

A. Military

Question 19

Fair and Accurate Credit Transactions Act (FACTA):
Truncation of Credit and
Debit Card Numbers:
The FACT Act prohibits businesses from printing more than _____ digits of any customer’s credit/debit card number or expiration date on any receipt provided to the cardholder at the point of sale or transaction. The provision _____ handwritten or imprinted receipts if that is the only method of recording the card number.

Answer 19

A. 5
B. Excludes

Question 20

Fair and Accurate Credit Transactions Act (FACTA):
Security and Disposal:
To further protect the privacy of consumer financial information, the FACT Act requires businesses to take measures to responsibly _____ and ______ of sensitive personal information found in a consumer’s credit report. Reasonable methods for security and disposal include:
• ______ or ______ papers that contain consumer report information so that information cannot be reconstructed.
• _______ or ______ electronic files or media so that information cannot be recovered or reconstructed.
• Placing all pending loan documents in _____ desks, cabinets, or storage rooms at the end of the workday.

Answer 20

A. Secure and Dispose
B. Burning or Shredding
C. Destroying or Erasing
D. Locked

Question 21

Fair and Accurate Credit Transactions Act (FACTA):
Red Flags Rule:
As Congress went into final hearings on FCRA amendments, several widely reported surveys on the number of identity theft victims were released. A September 2003 Federal Trade Commission report estimated approximately 10 million people were victims of identity theft in 2002 alone. This resulted in the enactment of Section _____ of the FACT Act.

Answer 21

A. Section 114

Question 22

Fair and Accurate Credit Transactions Act (FACTA):
Red Flags Rule:
Red Flags Rules, which require:
• Financial institutions and creditors to implement a WRITTEN identity theft _____ program.
• Card issuers to assess the _____ of change of address requests.
• Users of consumer reports to reasonably VERIFY the IDENTITY of the subject of a consumer report in the event of a notice of address ______.

Answer 22

A. Prevention
B. Validity
C. Discrepancy

Question 23

Fair and Accurate Credit Transactions Act (FACTA):
Red Flags Rule:
Section 114 applies to federal and state-chartered _____ and credit unions, non-bank lenders, mortgage brokers, any person who regularly participates in a ______–including setting the terms of credit, and any person who requests a consumer report. Every organization has the flexibility to define a program that is appropriate to the size and operation of their particular business.

Answer 23

A. Banks
B. Credit Decision

Question 24

Gramm-Leach-Bliley Act (GLB Act):
The ______ Act of 1999, also known as the Gramm-Leach-Bliley Act under Regulation ____, includes provisions in GLB Act Title ____ - Privacy:
GLB was enacted to protect and regulate the ______ of consumers’ personal financial information. There are three principal parts to the privacy requirements:
a.
b.
c.

Answer 24

A. The Financial Services Modernization Act
B. Regulation P
C. Title V - Privacy
D. Disclosure
E.
a. The Financial Privacy Rule
b. The Safeguards Rule
c. Pretexting Provisions

Question 25

Gramm-Leach-Bliley Act (GLB Act):
The GLB Act gives authority to the Federal Trade Commission (FTC) and several other federal and state agencies to administer and enforce GLB Act Title V - ______ .
These regulations apply to financial institutions, which include NOT ONLY banks, securities firms, and insurance companies, but also _____ providing many other types of financial products and services to consumers, such as:
• Lending, brokering, or servicing any type of consumer ____
• Transferring or _____ money
• Preparing individual ___ returns
• Providing financial advice or credit counseling
• Providing residential real estate ________ services
• Collecting consumer _____

Answer 25

A. Title V - Privacy
B. Companies
C. Loan
D. Safeguarding
E. Tax
F. Settlement
G. Debts

Question 26

Gramm-Leach-Bliley Act (GLB Act):
Financial Privacy Rule:
Information that many would consider private-including bank balances and account numbers–is regularly bought and sold by banks, credit card companies, and other financial institutions.
The Financial Privacy Rule governs the _____ and ____ of customers’ personal financial information-known as _____ personal information– _____when and under what circumstances such information may be disclosed to affiliates and to non-affiliated third parties.

Answer 26

A. Collection
B. Disclosure
C. Non-Public
D. Restricting

Question 27

Gramm-Leach-Bliley Act (GLB Act): Financial Privacy Rule:
Non-_____ personal information could include the following types of information:
• What a consumer or customer PUTS on an _____
• Data about the individual from another source, such as a _____ bureau
• Transactions between the individual and the company, such as an account BALANCE, payment HISTORY, or credit/debit card PURCHASE information.
• Whether an individual is a ____ or ______ of a particular financial institution

Answer 27

A. Public
B. Application
C. Credit
D. Consumer
E. Customer

Question 28

Gramm-Leach-Bliley Act (GLB Act):
Financial Privacy Rule:
These restrictions are based on a REQUIRED _____ notice provided to the consumer, explaining the lender’s information collection procedures and information sharing and transfer practices. A financial institution must disclose its policy to consumers _____ they disclose personal information, disclose the policy ______ for customers throughout the financial relationship, and PROVIDE the consumer instructions on how to _____ of having this information shared.

Answer 28

A. Consumer Privacy Policy
B. Before
C. Annually
D. Opt-out

Question 29

Gramm-Leach-Bliley Act (GLB Act):
Financial Privacy Rule:
Even if a consumer does NOT opt-out of receiving policy disclosures, financial institutions are PROHIBITED from disclosing other than to a consumer reporting agency, any ____ codes or ______ numbers to any non-affiliated third-party for use in ______, direct mail marketing, or other marketing through electronic mail. ______ are responsible for VALIDATING any other entity to which they TRANSFER custody of private consumer data.

Answer 29

A. Access
B. Account
C. Telemarketing
D. Creditors

Question 30

Gramm-Leach-Bliley Act (GLB Act):
QUESTION: Consumer or Customer?
A company’s obligations under the GLB Act depend on whether the company has consumers or customers who obtain its services:
• A _________ is an individual who obtains, or has obtained, a financial product or service from a financial institution for personal, family, or household reasons, usually with a onetime transaction.
• A ____ has a continuing relationship with a financial institution. Generally, if the relationship between the financial institution and the individual is significant and/or long-term, the individual is a customer of the institution. In the mortgage industry, the loan servicer is typically the servicer of the mortgage loan.

Answer 30

A. Consumer
B. Customer

Question 31

Gramm-Leach-Bliley Act (GLB Act):
QUESTION: Consumer or Customer?
For example, a person who gets a mortgage from a lender or hires a broker to get a personal loan is considered a ____ of the lender or the broker, while a person who uses a check-cashing service is a _____ of that service.

Answer 31

A. Customer
B. Consumer

Question 32

Gramm-Leach-Bliley Act (GLB Act):
Safeguards Rule:
The Safeguards Rule requires ALL financial institutions to design, implement, and maintain _____ to protect customer information while it is in the custody and control of the institution and its agents. This rule applies NOT ONLY to financial institutions that collect information from their customers but also to any institution–such as a credit reporting agency or even an educational institution–that receives customer information from other financial institutions.

Answer 32

A. Safeguards

Question 33

Gramm-Leach-Bliley Act (GLB Act): Safeguards Rule:
According to The _______ Rule a written Safeguards Policy must include provisions that:
• Ensure the _____ and confidentiality of customer records.
• Protect against any anticipated threats or hazards to the security of such ______.
• ______ against the UNAUTHORIZED access or use of such records or information in ways that could result in _____ harm or inconvenience to customers.

Answer 33

A. Safeguards
B. Security
C. Records
D. Protect
E. Substantial

Question 34

Gramm-Leach-Bliley Act (GLB Act):
Safeguards Rule:
This aspect of the GLB Act is probably the most onerous for businesses covered since it requires a security infrastructure to be designed, implemented and audited ______. On March 5, 2019, the FTC proposed changes to the Safeguards Rule that would significantly increase security and require a higher level of compliance by institutions affected.

Answer 34

A. Continuously

Question 35

Gramm-Leach-Bliley Act (GLB Act):
Pretexting Provisions:
This provision protects consumers from individuals and companies that obtain their personal financial information under ____, ____, or _____, pretenses.

Answer 35

A. False
B. Fictitious
C. Fraudulent

Question 36

USA PATRIOT Act:
The ______ Act more commonly known as the USA PATRIOT Act, was enacted in October 2001 in response to the September 11, 2001 terrorist attacks.

Answer 36

A. Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism

Question 37

USA PATRIOT Act:
The USA PATRIOT Act:
• Increases the ability of law enforcement agencies to SEARCH telephone, e-mail, medical, financial, and other records.
• Eases restrictions on foreign intelligence GATHERING within the United States.
• Expands the Secretary of the Treasury’s authority to REGULATE financial transactions, particularly those involving foreign individuals and entities.
• Enhances the DISCRETION of law enforcement and immigration authorities in detaining and deporting immigrants SUSPECTED of ______-related acts.

Answer 37

A. Terrorism

Question 38

USA PATRIOT Act:
Title _____ of the USA PATRIOT Act, designated the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, this makes it MANDATORY for lenders and banks to create and maintain ______, to prevent financing of terrorist operations and money laundering in order to comply with this Act. CIPs require covered institutions to VERIFY the identity of customers who are entering into a “______”, such as taking out a loan or a credit account. These requirements are more clearly defined in the _____ Act regulations.

Answer 38

A. Title Ill
B. Customer Identification Programs (CIPs)
C. Formal Relationship
D. Bank Secrecy Act/Anti Money Laundering Act

Question 39

USA PATRIOT Act:
Customer Identification Programs (CIP) Minimum Data Required:
A covered institution must obtain from all customers opening a new account, at a MINIMUM , the following:
• _____
• Date of ______
• Residential or work _____ for individuals, or physical location address for _____ entities
• For U.S. citizens or legal entities organized under state law: A ___
• For lawful permanent residents or non-immigrants: A TIN, passport _____ and _____ of issuance, alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photo
• For non-U.S. legal entities with no TIN: A government-issued certificate of ________ or good standing

Answer 39

A. Name
B. Birth
C. Address
D. Legal
E. Tax Identification Number (TIN)
F. Number and Country
G. Existence

Question 40

USA PATRIOT Act:
Minimum Data Required:
NOTE: If a lender is extending credit to the borrower using a mortgage broker as its agent, it must ensure the broker is performing the bank’s ____.

Answer 40

A. CIP

Question 41

USA PATRIOT Act:
National Do Not Call Registry:
A provision of the federal _____ Rule the National Do Not Call (DNC) Registry, is managed by the ______, the nation’s consumer protection agency, and enforced by the FTC, the Federal Communications Commission (FCC), and state law enforcement officials.

Answer 41

A. Telemarketing Sales Rule
B. Federal Trade Commission (FTC)

Question 42

USA PATRIOT Act:
National Do Not Call Registry:
The National Do Not Call Registry APPLIES to any plan, program, or campaign to sell goods or services through _____ phone calls. This includes telemarketers who SOLICIT consumers, often on behalf of third-party sellers.
It also includes SELLERS who provide, offer to provide, or arrange to provide goods or services to consumers in exchange for payment. The National Do Not Call Registry does NOT limit calls by political organizations, charities, or telephone surveyors. However, note that it is a violation of the Telemarketing Sales Rule to make outbound telemarketing calls to the person’s home outside the hours of _____ local time. Also, since the Telemarketing Sales Rule applies to consumers, calls to _____ are NOT protected.

Answer 42

A. Interstate
B. 8 a.m. and 9 p.m.
C. Businesses

Question 43

USA PATRIOT Act:
National Do Not Call Registry:
To keep from violating National Do Not Call regulations, a company must maintain national and internal lists of customers and prospects and keep them updated regularly. Both the national DNC list and the internal DNC list must be updated every _____ days and records to document this must be maintained for _____ Years.

Answer 43

A. 31 Days
B. 2 Years

Question 44

USA PATRIOT Act:
National Do Not Call Registry:
Calling Time Restrictions:
A consumer who receives a telemarketing call despite being on the registry is able to file a complaint with the FTC. Violators could be fined up to $______ per call, as each call, NOT each day, is considered a _____ incident.

Answer 44

A. $43,280 Per Call
B. Separate

Question 45

USA PATRIOT Act:
National Do Not Call Registry: Established Business Relationship (EBR):
A telemarketer or seller may call a _____ with whom it has an established business relationship (EBR) for up to ____ months after the consumer’s last purchase, delivery, or payment, EVEN if the consumer’s number is on the National Do Not Call Registry.

Answer 45

A. Consumer
B. 18 Months

Question 46

USA PATRIOT Act:
Established Business Relationship (EBR):
In addition, a company may call a consumer for up to _____ months after the consumer makes an inquiry or submits an application to the company. Obtaining the name, phone number, and _____ from a consumer provides written consent that does NOT expire until _____.

Answer 46

A. Three
B. Signature
C. Rescinded

Question 47

USA PATRIOT Act:
Established Business Relationship (EBR):
One warning: If a consumer has asked to be put on the company’s internal Do Not Call list, the company may NOT call, even if there is an _____. This prohibition is only against solicitation of NEW business. Calls MAY be made to consumers in reference to a _____ relationship, such as a creditor making a ______ call.

Answer 47

A. EBR
B. Current
C. Collection

Question 48

SUMMARY:
Regulation ____ implements the _____ Act, also known as the FCRA, which is a federal law dealing with the granting of credit, access to credit information, the rights of debtors, and the responsibilities of creditors.

Answer 48

A. Regulation V
B. Fair Credit Reporting Act

Question 49

SUMMARY:
The FCRA provides consumers with the right to; an _____ notice in the event of a loan DECLINE, request a COPY of their consumer credit report, request their credit SCORE, DISPUTE incomplete or inaccurate information, and limit PRESCREENED offers.

Answer 49

A. Adverse Action

Question 50

SUMMARY: Under the FCRA, consumer reporting agencies:
May NOT report _____ negative information-in most cases, information that is more than seven years old or bankruptcies that are more than ten years old; there is NO time limit on reporting of criminal convictions; must limit _____ to a credit report–may provide information to people with a legitimate business need-usually to consider an application with a creditor, insurer, employer, landlord, or other business; and may not give out consumer credit information to an employer, or a potential employer, without written consent given to the employer by the consumer. The FCRA specifies those with a valid need for access.

Answer 50

A. Outdated
B. Access

Question 51

SUMMARY: The _____ Act of 2003 , sometimes referred to as either the FACT Act or simply FACTA, amended the federal Fair Credit Reporting Act and is intended primarily to help consumers fight the growing crime of identity theft.

Answer 51

A. The Fair and Accurate Credit Transactions Act

Question 52

SUMMARY: One of the major provisions of the FACT Act is to allow consumers easier access to their credit reports as a way to spot possible identity theft and to allow dispute of inaccurate information. The Act requires that consumers applying for home loans receive the ______ Disclosure Notice, which explains their rights.

Answer 52

A. Home Loan Applicant Credit Score Information Disclosure

Question 53

SUMMARY: If a consumer believes he or she has been a victim of identity theft, the FACT Act allows the consumer to contact the credit bureau and place a ______.

Answer 53

A. Fraud Alert

Question 54

SUMMARY: The FACT Act also allows consumers to place a credit _____ in order to prevent the information from showing on a credit report.

Answer 54

A. Freeze

Question 55

SUMMARY: The FACT Act prohibits businesses from printing more than _____ digits of any customer’s credit/debit card number or expiration date on any receipt provided to the cardholder at the point of sale or transaction.

Answer 55

A. Five

Question 56

SUMMARY: The FACT Act requires businesses to take measures to responsibly ______ and _____ of sensitive personal information found in a consumer’s credit report, such as shredding the consumer’s documents, placing them in a locked storage area when not in use, and taking steps to protect information stored on electronic media.

Answer 56

A. Secure
B. Dispose

Question 57

SUMMARY: Section _____ of the FACT Act, known as the ____ Rule, requires: Financial institutions and creditors to implement a written identity theft prevention program; card issuers to assess the validity of change of address requests; and users of consumer reports to reasonably verify the identity of the subject of a consumer report in the event of a notice of address discrepancy.

Answer 57

A. Section 114
B. Red Flags Rule

Question 58

SUMMARY: The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, includes provisions to protect and regulate the disclosure of consumers’ personal financial information. There are three principal parts to the privacy requirements:
a.
b.
c.

Answer 58

A. The Financial Privacy Rule
B. Safeguards Rule
C. Pretexting Provisions

Question 59

SUMMARY: A company’s obligations under the _______ Act depend on whether the company has ______ (i.e., people who obtain or have obtained a financial product or service from a financial institution) or ______ (i.e., people who have a continuing relationship with a financial institution). Generally, if the relationship between the financial institution and an individual is significant and/or long-term, the individual is a customer of the institution. In the mortgage industry, the loan servicer is typically the servicer of the mortgage loan.

Answer 59

A. Gramm-Leach-Bliley Act
B. Consumers
C. Customers

Question 60

SUMMARY: The _____ Act increases the ability of law enforcement agencies to search telephone, e-mail, medical, financial, and other records; eases restrictions on foreign intelligence gathering within the United States; expands the Secretary of the Treasury’s authority to regulate financial transactions, particularly those involving foreign individuals and entities; and enhances the discretion of law enforcement and immigration authorities in detaining and deporting immigrants suspected of terrorism-related acts.

Answer 60

A. USA PATRIOT Act

Question 61

SUMMARY: The ______ applies to any plan, program, or campaign to sell goods or services through interstate phone calls, including telemarketers who solicit consumers, often on behalf of third-party sellers and sellers who provide, offer to provide, or arrange to provide goods/services to consumers in exchange for payment.

Answer 61

A. National Do Not Call Registry

Question 62

SUMMARY: A loan originator may call a consumer with whom it has an established business relationship (EBR) for up to 18 months after the consumer’s last purchase, delivery, or payment, even if the consumer’s number is on the National Do Not Call Registry. In addition, a company may call a consumer for up to ____ months after the consumer makes an inquiry or submits an application to the company.

Answer 62

A. 18 Months
B. 3 Months

Question 63

Fair and Accurate Credit Transactions Act (FACTA) :
The FACT Act was passed in _____ during a time in which identity theft was an ever increasing problem for consumers and creditors. This the law focused on accuracy, privacy, limits on information sharing, and new consumer rights to disclosure.

Answer 63

A. 2003

Question 64

Fair and Accurate Credit Transactions Act:
Provisions of the FACT Act:
The FACT Act contains ____ major titles:
• Identity Theft _____ and Credit History
Restoration
• Improvements in Use of and Consumer Access to ____ Information
• Enhancing the ______ of Consumer Report
Information
• Limiting the Use and Sharing of ________ Information in the Financial System
• Financial ______ and Education Improvement
• Protecting Employee ______ Investigations
• Relation to State ____

Answer 64

A. Seven
B. Prevention
C. Credit
D. Accuracy
E. Medical
F. Literacy
G. Misconduct
H. Laws

Question 65

Gramm-Leach-Bliley Act (GLB Act):
QUESTION: Consumer or Customer?
Under the GLB Act, regulated by Regulation ____, customers must receive a financial institution’s privacy notice every _____ for as long as the _____ relationship lasts. _______, on the other hand, are entitled to receive a privacy notice from a financial institution only if the company shares the consumer’s information with companies NOT affiliated with it, with some exceptions.

Answer 65

A. Regulation P
B. Year
C. Customer
D. Consumers

Question 66

Vocabulary:
The denial of credit, or an increased charge for credit, based on information obtained from a third party.

Answer 66

A. Adverse Action

Question 67

Vocabulary:
An independent government agency within the Federal Reserve System with rulemaking and enforcement authority over many consumer financial laws. The CFPB was established under Title X of the Dodd-Frank Act.

Answer 67

A. Consumer
Consumer Financial Protection Bureau (CFPB)

Question 68

Vocabulary:
Places a credit file ‘______’ by preventing the information from being reported to third parties, including mortgage lenders and other credit grantors. Lenders are not able to gain access to the credit file unless given permission by the account holder. The credit file can still be disclosed in certain situations, such as for companies (e.g., mortgage, credit card, cell phone) doing business with the account holder and for collection agencies working for one of the companies.

Answer 68

A. Credit Freeze
B. on ice

Question 69

Vocabulary:
A consumer with a continuing, significant relationship with a financial institution.

Answer 69

A. Customer

Question 70

Vocabulary:
A condition attached to a credit report that requires lenders to take extra precautions (e.g., contact by phone) to verify that the identity of the party seeking to establish the credit account is truly the individual who wants the new account.

Answer 70

A. Fraud Alert