CRCM

CRCM practice questions, page 9 of 19, with answer review and explanations.

Question 41

Which one of the following should be included in an early termination notice in case of the termination from consumer leasing agreement?

  1. A warning to the consumer that a substantial charge may result from early termination (required only in a motor vehicle lease)
  2. A statement of the conditions under which the lessee or lessor may terminate the lease prior to the end of the lease term
  3. The purchase option at the end of the lease term
  4. The amount of any penalty or other charge for early termination (the penalty must be reasonable)

Question 42

In Consumer Leasing Act Content of non-segregated disclosures may be made separately or as part of another document (such as the lease agreement); however, other information cannot be stated, used, or placed so as to mislead or confuse the consumer. Other disclosures include all of the following EXCEPT:

  1. A statement of the conditions under which the lessee or lessor may terminate the lease before the end of the lease term, along with the amount (or a description of the method of how the amount is determined) of any penalty or other charge for early termination
  2. Whether the lessee has the option to purchase the leased property during the lease term and, if applicable, the purchase price (or method for determining it) and when the lessee may exercise it
  3. The lessee's right to an independent appraisal of the property if the lessee's liability at the end of the lease is based on the realized value of the leased property, and that the appraisal will be binding on all parties
  4. A statement of maintenance responsibilities including the counter bank responsible and a description of the responsibility

Question 43

Under Renegotiations, extensions, and assumptions-12 CFR 213.5; any lease that is renegotiated or extended by longer than six months is considered to be a new lease, subject to new disclosure requirements, except when:

  1. One or more payments are deferred, whether or not there is a charge for the deferral
  2. Lease property is substituted with property of substantially equivalent or greater value, if no other lease terms are changed
  3. In a multiple-item lease, property is added, deleted, or substituted provided the average periodic payment does not change by more than 35 percent
  4. There is an agreement resulting from a pre-order

Question 44

In Advertising-12 CFR 213.7, if a percentage rate is used in an advertisement, it cannot be more prominent than any other disclosure, EXCEPT:

  1. For the warning regarding the limitation of the rate as a measurement of cost
  2. For beginning at least 3 days before and ending at least 10 days after the broadcast
  3. For required disclosures in advertisements
  4. For an advertisement accessed in electronic form

Question 45

Under Consumer Leasing Act Enforcement-15 USC 1667d section FIRREA penalties include:

  1. Penalties up to $8,500 per day for violations of laws and regulations
  2. Penalties up to $37,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
  3. Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
  4. Penalties up to $9,500 per day for violations of laws and regulations