TILA - Open End Credit

Question 1

Open end credit is a consumer credit extended under a plan where

Answer 1

Repeated transactions are contemplated

A finance charge is imposed on an outstanding balance

Question 2

Disclosures for open end credit must be made

Answer 2

Clearly and conspicuously

May be provided electronically with customer consent

Question 3

No consumer consent is required to provide disclosures required

Answer 3

In adverstieme nets

Home equity plans, when app assed on line

Credit card applications taken in electronic form

Question 4

Except for the following, disclosures must be in writing and in a form the customer can keep

Answer 4

Govt agency taxes

Charges for terminating a plan

Reduction in credit limit

Question 5

On home equity plans, the terms finance charge and annual percentage rate must be

Answer 5

More conspicuous than other disclosures when required to be disclosed with corresponding amounts

Question 6

In telephone transactions, account opening disclosures may be provided as soon as reasonably

Answer 6

Practical after first transaction

Question 7

Account opening disclosure for a home equity line must disclose

Answer 7

Finance charge

Amount of any other charge that may be imposed

How the creditor can terminate the plan

Payment terms

Statement of what minimum payments do

Statement that negative amortization may occur

Limitation of extensions

Consult tax advisor about tax deductions

Identity security interest

Statement of billing rights

Question 8

For rates tied to an index or formula the following must be disclosed

Answer 8

Fact apr may increase

How rate was determined

How rate may increase

Frequency of rate increase

Limitation of rate increase

Question 9

For rate not tied to an index the following must be disclosed

Answer 9

Initial rate

How long rate will be in effect

Rate that will apply once rate changes

Balances to which new rate would apply

Question 10

Periodic statements must be mailed or delivers _______ days before due date

Answer 10

21

Question 11

Card issuer can not treat minimum payment as late if

Answer 11

Payment is received within 21 day period

Question 12

Annual statement of billing rights must be sent

Answer 12

At least once per calendar year at intervals not less than six months but not more than 18

Question 13

If a new feature is added within 30 days after mailing intial disclose then

Answer 13

No new disclosures are necessary unless the finance charges have changed

Question 14

Change in terms for home equity loan

Answer 14

Written notice required

Notice must be mailed within 15 days before the effective date change unless the change was agreed upon by the customer

Question 15

If creditor prohibits additional credit or reduces credit, a notice must be mailed to each affected consumer not later than ______

Answer 15

3 business days

Question 16

Written notice of a change in terms for a open end plan not home secured requires at least ______ days

Answer 16

45 days notification unless the consumer agrees to the change. The. It only has to be given before the effective date

Question 17

An open end plan that is not home secured do not trigger a notice when

Answer 17

Termination of an account

Change due to court proceedings

Extension of a grace period

Question 18

Disclosures required upon renewal of a card when

Answer 18

Annual or other fee is charged. Notice must be mailed 30 days before fee is charged

Question 19

A solicitation occurs when

Answer 19

The card issuer offers to open a credit or chart card account without requiring the consumer to complete an application

Question 20

The following must be printed in bold when required to be displayed in a table

Answer 20

APR

Introductory rate

Rate that will be effective after the premium initial rate expires

Question 21

If the application or solicitation is made electronically, the consumer must be

Answer 21

Able to access the disclosure at the same time as the solicitation

Question 22

The APR for purchases must be in what font size

Answer 22

16 point

Question 23

Disclosures may be given in a foreign language provided they are also available in

Answer 23

English

Question 24

What is a billing error notice

Answer 24

A written notice from a consumer at the card issuers address received within 60 days after the periodic statement containing the error

Question 25

On receipt of a billing error notice, the creditor must Resolve the disputes or send written acknowledgement within

Answer 25

30 days

Question 26

If the dispute is not resolved in 30 days the creditor must resolve the dispute within

Answer 26

Two billing cycles, not to exceed 90 days

Question 27

Until the billing error is resolved,

Answer 27

The consumer need not pay

The creditor can not threaten to take adverse action

Creditor may. It accelerate any part of the consumers debt

Question 28

If the creditor determines that the consumer owes all or part of the disputed debt the creditor must notify the consumer that

Answer 28

Payment is due

Must allow the consumer any grace period allowed in the plan to repay the debt

May report an amount delquent after the grace period elapsed

May not report delquent if creditor receives another notice of dispute

Question 29

A creditor shall not terminate an account before its expiration date solely because the consumer does not incur a

Answer 29

Finance charge

Question 30

A creditor may terminate an account that is inactive for

Answer 30

Three or more months

Question 31

Card holder may not be held liable for unauthorized use of the credit card for more than

Answer 31

$50

Question 32

If an advertisement states specific terms, it must only state those terms

Answer 32

Actually offered by the bank

Question 33

A card issuer may not open or increase an open end credit unless it considers

Answer 33

The ability to make the minimum periodic payments

Question 34

Card issuers must establish and maintain reasonable written policies and procedures to consider

Answer 34

An applicants income or assets and must require the consideration of at least one of the following

Dti
Dti to assets
Incomes consumer will have after paying debts

Question 35

Consumers under 21 must submit a ___________ ______________ when applying for credit card

Answer 35

Written application

Question 36

No increases can occur on the account for someone less than 21 unless

Answer 36

There is a written agreement of the co-signer, joint applicant or guarantor

Question 37

Fees that are not subject to 25 percent fees limit rule include

Answer 37

Late payment fees

Question 38

When a consumer makes a payment in excess of the required minimum for an open end account, not home secured the allocated amount must be allocated

Answer 38

First to the balance with the highest APR