Certified Regulatory Compliance Manager (CRCM) — Question 44

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

Answer options

• A. Penalties up to $8,500 per day for violations of laws and regulations
• B. 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
• C. 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
• D. Penalties up to $9,500 per day for violations of laws and regulations

Correct answer: A, B

Explanation

The correct answers, A and B, accurately reflect the penalties outlined in FIRREA for violations, with A specifying penalties for general law violations and B detailing higher penalties for reckless or patterned misconduct. Options C and D are incorrect as they either exaggerate the penalties or misrepresent the specifics of the legislation.