--- title: Consumer Credit Quiz description: Free CeMAP quizzes from Overcome Mortgages. Exam‑style practice questions with instant feedback to help you prepare and improve. 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Test your knowledge of the Consumer Credit Act, CONC rules, APR calculations, and regulatory compliance for credit agreements. **CEMAP Topics Covered:** Consumer Credit Act, FCA CONC rules, APR requirements, cooling-off periods, high-cost short-term credit caps, creditworthiness assessments, and debt collection practices. This quiz is specifically designed for CEMAP students preparing for their exams and financial services professionals maintaining their regulatory knowledge. CEMAP quiz, Certificate in Mortgage Advice and Practice, consumer credit, Consumer Credit Act, FCA CONC rules, APR, cooling-off period, high-cost short-term credit, credit agreements Take CEMAP Quiz Now # Consumer Credit Quiz ## 1. What is the primary purpose of the Consumer Credit Act 2006? A. To regulate all forms of mortgage lending in the UK B. To control the Bank of England’s base interest rate policy C. To ensure fair treatment of insurance policyholders D. To increase protection for borrowers in consumer credit agreements   ## 2. Which of the following is exempt from the provisions of the Consumer Credit Act? A. Credit card agreements used for personal spending B. Loans over £25,000 to small businesses for business purposes C. Hire purchase agreements for personal vehicles D. Personal loans under £25,000 from a bank   ## 3. What is the standard cooling-off period granted to borrowers under the Consumer Credit Act? A. 14 days B. 7 days C. 28 days D. 1 calendar month   ## 4. Which of the following must be included in advertisements for consumer credit products under the Consumer Credit Directive? A. The borrower’s most recent credit score B. The lender’s credit scoring criteria C. A representative example with a 'representative' APR D. Details of the lender’s internal underwriting policy   ## 5. What is the FCA's cap on daily interest and fees for high-cost, short-term credit? A. 1.0% per day B. 0.8% per day C. 0.5% per day D. 0.1% per day   ## 6. Which of the following activities requires full FCA authorisation under consumer credit regulations? A. Credit broking as a main business activity B. Providing informal loans to friends with interest charged C. Selling goods on credit within a private club D. Offering personal loans under £5000 without a contract   ## 7. What must lenders do before significantly increasing a customer's credit limit under CONC rules? A. Obtain written consent from the borrower's bank B. Notify the customer at least 30 days before the change C. Automatically raise interest rates D. Assess the customer's creditworthiness   ## 8. Which of the following statements must be included in communications about loans secured on a borrower's home? A. "This loan is subject to PRA regulation" B. "Credit history can impact approval" C. "Your home may be at risk if you do not keep up repayments" D. "Early repayment charges will apply"   ## 9. What is the maximum total repayment amount allowed under FCA rules for high-cost, short-term credit? A. 100% of the amount borrowed B. 150% of the amount borrowed C. 200% of the amount borrowed D. 250% of the amount borrowed   ## 10. Which CONC section specifically addresses requirements for debt management firms? A. CONC 10 B. CONC 12 C. CONC 5 D. CONC 7   ## 11. Which of the following activities would require full FCA authorisation under consumer credit regulations? A. Operating as a credit broker for payday loans B. Selling goods on credit in a retail store under 50k C. Offering a store card with a £500 limit D. Providing debt counselling as a community service   ## 12. Under the Consumer Credit Directive, what must a creditor do before granting a significant increase in credit? A. Reduce the APR for the borrower B. Complete a full FVA approved factfind C. Charge any additional processing fees D. Assess the borrower’s creditworthiness   ## 13. Which CONC section specifically addresses overdraft pricing rules? A. CONC 7E B. CONC 10 C. CONC 5C D. CONC 8   ## 14. What is the maximum default fee allowed under the FCA’s cap on high‑cost, short‑term credit? A. £25 B. £15 C. £50 D. £5   ## 15. Which of the following is exempt from the cooling‑off period under the Consumer Credit Act? A. A £10,000 personal loan B. A credit card agreement C. A hire purchase agreement for a car D. A £40 or under overdraft facility   ## 16. What must a credit intermediary disclose under the Consumer Credit Directive? A. Whether they work exclusively with one lender B. The borrower’s latest credit score C. Their annual rate stress test eligibility D. Competitors’ APRs   ## 17. Under CONC 7, what must a lender do if a customer exceeds their overdraft limit? A. Charge an immediate penalty fee B. Report the customer to a credit reference agency C. Close the account automatically D. Contact the customer in writing without delay   ## 18. Which of the following is a requirement for rent-to-own agreements under CONC 5B? A. APR disclosure is optional if under £1,000 B. Prices must not exceed the average of three local competitors C. Total credit cannot exceed 100% of the product’s cost D. No cooling‑off period applies   ## 19. What is the primary purpose of the representative APR in credit advertisements? A. To match the Bank of England base rate B. To show the absolute lowest possible rate a lender could offer C. To include any broker fees in cost D. To reflect the rate offered to at least 51% of successful applicants   ## 20. Which CONC section covers debt collection practices? A. CONC 5 B. CONC 7 C. CONC 3 D. CONC 9   ## 23. Which of the following triggers a financial promotion risk warning under CONC 3? A. "Warning: Late repayment can cause serious money problems" B. "Low‑interest rates available" C. "No fees for early repayment" D. "Approval guaranteed"   ## 22. What is the FCA’s requirement for firms monitoring overdraft repeat use? A. Charge higher fees to customers who exceed limits B. Report repeat users to credit agencies within 30 days C. Suspend customer accounts after three limit breaches D. Identify patterns of repeat use and take steps to reduce them   ## 23. Which activity falls under the limited permission regime for consumer credit? A. Peer‑to‑peer lending platforms B. Offering incidental credit C. Credit broking as a main business D. Debt adjusting as the firm’s principal activity   ## 24. Under UK consumer credit law, what is the primary legal significance of an “unenforceable agreement”? A. The lender cannot obtain a court order to compel repayment unless the agreement is first made compliant B. The debt is automatically written off and removed from the borrower’s credit file C. The borrower is entitled to a refund of all payments made under the agreement D. The lender must transfer the debt to the FCA   ## 25. When calculating the APR for a regulated credit agreement, which of the following must be included in the cost of credit? A. Optional payment protection insurance premiums, if purchased after the agreement is signed B. Fees for services unrelated to the granting of credit, such as after‑sales warranties C. Compulsory charges known at the outset that the borrower must pay as a condition of the credit D. Any voluntary overpayments made by the borrower during the term   Submit Answers   Overcome Mortgages is a trading name of CS Financial Group Limited, registered in England and Wales. Registered address: 10/12 Woolpack Yard, Kendal, LA9 4NG. Company Registration Number: 10731629. CS Financial Group Limited is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority The information on this website is for the use of residents of the United Kingdom only. 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