Financial Counseling Certification Program (FiCEP) Practice Exam

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Prepare for the Financial Counseling Certification Exam. Use flashcards and multiple choice questions with hints and explanations to boost your readiness. Ace your certification!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Do credit unions need to comply with SCRA and MLA regulations?

Yes, they must comply
No, they are exempt
Only if receiving federal funds
Only for consumer loans

The correct answer is: Yes, they must comply

Credit unions are required to comply with the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA) regulations. These regulations are put in place to provide financial protections for servicemembers and their dependents, ensuring that they are not taken advantage of while serving in the military. SCRA offers a range of protections, such as limiting interest rates on debts incurred before military service and allowing for the temporary suspension of certain legal proceeding actions. Similarly, the MLA establishes requirements related to the terms and conditions of consumer loans offered to military personnel, ensuring that active duty members are not subjected to predatory lending practices. By being compliant with these regulations, credit unions affirm their commitment to the financial well-being of servicemembers, helping them manage their financial obligations without additional burdens that could arise from predatory lending or excessive interest rates. This necessity for compliance is consistent across all financial institutions, reinforcing the protection of military personnel regardless of whether they receive federal funds or the type of loans granted.