Checking The Applicants Credit Status Flashcards
A) How much must a creditor be owed in order to petition for a debtors bankruptcy?
B) for how long does a bankruptcy order remain in force?
C) what restrictions are there On a bankrupt individuals ability to borrow?
A) must be owed a minimum of £5000 to petition for bankruptcy in England, Wales, NI
B) remains in place for 12 months. Longer if court feels appropriate
C) can not apply for loans over £500 alone or jointly without disclosing the bankruptcy. Can not acquire interest in land (no mortgage prospect).
Is an individual legally prevented from taking out a mortgage if they are subject to an IVA?
There is nothing legally preventing an individual with an IVA applying but lenders may be unwilling to consider an application
A) What are the 3 principles of money-laundering offences?
B) can you name 2 other offences in relation to money laundering that are particularly relevant to advisories?
C) what is the joint money laundering steering group?
A) concealing criminal property, arranging for someone else to acquire, use retain) criminal property, acquiring, using, possessing property that an individual knows/suspects to be proceeds of criminal activity.
B) failure to disclose suspicion of money laundering to the authorities. Tipping off to those under suspicion.
C) a group of UK trade associations that aim to foster good practice in countering money laundering. Mainly through guidance notes.
Which of the following could not be identified by reviewing a prospective borrowers financial statements?
A) whether the borrower regularly exceeds their overdraft limit.
B) whether the borrower regularly receives income in cash.
C) whether the borrowers regular income is as stated on their mortgage application.
D) the borrowers ability to manage their financial affairs soundly.
B) whether the borrower regularly receives income in cash.
Which of the following is most likely to receive a good credit score?
A) Ranbir, who has a personal loan and a mortgage and no record of missed payments.
B) Joleena, who has never had a credit card, loan or mortgage.
C) Barry, who has seven credit cards and has just applied for another one.
D) Debbie, who has applied for payday loans twice in the past year.
A) Ranbir, who has a personal loan and a mortgage and no record of missed payments.
An individual who assumes full liability as a guarantor for a mortgage loan must be in a position to repay 100% of the outstanding loan if the borrower defaults, True or false?
True
Which of the following is most likely to invalidate a guarantee:
A) the guarantor writing to the lender requesting to be released from the guarantee
B) the guarantor losing their job
C) the lender failing to advise the guarantor that the borrower has missed several payments
D) the guarantor having experienced an episode of mental illness at the time of signing the guarantee
D) the guarantor having experienced an episode of mental illness at the time of signing the guarantee
A sole trader who fails to make payments under a ccj may be issued with an attachment of earnings order. True or false?
False
An attachment of earnings order requires an employer to deduct funds from an employees wage and send to the court
What is the effect of a trustee in bankruptcy filing a ‘form j restriction’ with the land registry in relation to a bankrupts property?
A) it prevents the owners from selling the property.
B) it permits the trustee in bankruptcy to sell the property without recourse to the owners
C) it requires land registry to note the trustees interest in the property and notify the trustee of any dealing relating to it.
D) it restricts the owners right to entry the property
C) it requires land registry to note the trustees interest in the property and notify the trustee of any dealing relating to it.
When completing a mortgage application, making false statements or providing false information is only a crime if the application leads to a mortgage. True or false.
False
Making false statements or providing false information is a crime under the 2006 Fraud act regardless of what the outcome is.
An expression of opinion as to an applicants creditworthiness is not regarded as personal data under the data protection legislation. True or False?
False
It is regarded as personal data.
Which of the following would potentially be regarded as mortgage fraud?
A) omitting information from the mortgage application about repayments due Ona loan from a friend.
B) including a variable annual bonus in the figure for regular income on an application
C) stating a purchase price 10 per cent more than the agreed price
D) submitting a mortgage application while under notice of redundancy without mentioning the fact.
All of them!
In relation to anti-money laundering requirements, for how long must evidence of a customers identity be retained?
At least 5 years from the end of the relationship with the customer.
