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Questions and Answers
What is considered an abusive act or practice according to Dodd-Frank?
What is considered an abusive act or practice according to Dodd-Frank?
- An act that does not interfere with a consumer's ability to understand a term or condition of a consumer financial product or service
- An act that interferes with a consumer's ability to understand a term or condition of a consumer financial product or service (correct)
- An act that allows a consumer to protect his or her interests in selecting or using a consumer financial product or service
- An act that takes reasonable advantage of a consumer's understanding of the material risks, costs, or conditions of the product or service
What must an act or practice do to be considered abusive according to Dodd-Frank?
What must an act or practice do to be considered abusive according to Dodd-Frank?
- Take reasonable advantage of a consumer's understanding of the material risks, costs, or conditions of the product or service
- Allow a consumer to protect his or her interests in selecting or using a consumer financial product or service
- Not interfere with a consumer's ability to understand a term or condition of a consumer financial product or service
- Materially interfere with the ability of a consumer to understand a term or condition of a consumer financial product or service (correct)
Are abusive acts or practices considered the same as unfair or deceptive acts or practices according to Dodd-Frank?
Are abusive acts or practices considered the same as unfair or deceptive acts or practices according to Dodd-Frank?
- Yes, they are considered the same thing under Dodd-Frank
- It depends on the specific act or practice in question
- Only if the act or practice interferes with a consumer's ability to understand a term or condition of a consumer financial product or service
- No, each prohibition is separate and distinct and are governed by separate legal standards (correct)
