Chase - Treating Customers Fairly - 2013
Machol and Johannes, LLC
Compliance Department
Chase - Treating Customers Fairly
Review the Chase - Treating Customers Fairly PDF slideshow before taking this test.
- 1.
One of your responsibilities is to listen carefully to customers and ensure they are not confused about whether they have enrolled in a product or service.
- A.
A. True
- B.
B. False
Correct Answer
A. A. TrueExplanation
The statement suggests that it is indeed one of the responsibilities to listen to customers attentively and make sure they are not confused about their enrollment in a product or service. This implies that the answer is true.Rate this question:
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- 2.
It is not your responsibility to present potential limits and restrictions about our products and services to customers. It is their responsibility to research and read the fine print.
- A.
A. True
- B.
B. False
Correct Answer
B. B. FalseExplanation
This statement is incorrect. It is indeed the responsibility of the company to present potential limits and restrictions about their products and services to customers. Customers rely on accurate and transparent information provided by the company to make informed decisions. Failing to disclose such information can lead to misunderstandings, dissatisfaction, and even legal issues.Rate this question:
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- 3.
Which of the following examples would not earn the consumers trust? Select all that apply.
- A.
A. Declining a loan application based on information in the customer’s credit report.
- B.
B. Charging a late fee when a customer was not given a reasonable amount of time to make a payment.
- C.
C. Telling customers about a change in loan terms after they paid non-refundable fees
- D.
D. Assessing an annual fee that was prominently displayed as part of the terms and conditions when applying for a credit card.
Correct Answer(s)
B. B. Charging a late fee when a customer was not given a reasonable amount of time to make a payment.
C. C. Telling customers about a change in loan terms after they paid non-refundable feesExplanation
The examples in options B and C would not earn the consumer's trust. Charging a late fee when a customer was not given a reasonable amount of time to make a payment is unfair and can be seen as taking advantage of the customer's situation. Similarly, telling customers about a change in loan terms after they have already paid non-refundable fees is deceptive and shows a lack of transparency. Both of these actions can damage the trust between the consumer and the company.Rate this question:
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- 4.
Which of the following examples do not offer clear disclosure of material features, costs, terms and limitations? Select all that apply.
- A.
A. Promoting a loan at a low initial interest rate without offering that the rate is adjustable and how often it may change.
- B.
B. Placing information about an annual fee that will be charged after the first year of the loan in small print and in a location where the customer might reasonably not notice the information
- C.
C. Reducing the Annual Percentage Yield on a savings account by properly disclosing the change.
- D.
D. Charging service fees when a checking account balance falls below a minimum balance that was clearly disclosed when the account was opened.
Correct Answer(s)
A. A. Promoting a loan at a low initial interest rate without offering that the rate is adjustable and how often it may change.
B. B. Placing information about an annual fee that will be charged after the first year of the loan in small print and in a location where the customer might reasonably not notice the informationExplanation
The examples in options A and B do not offer clear disclosure of material features, costs, terms, and limitations. Option A promotes a loan with a low initial interest rate without mentioning that the rate is adjustable and how often it may change. This lack of information can mislead customers who may not be aware of potential rate increases. Option B places information about an annual fee in small print and in a location where the customer might not notice it easily. This can result in customers being unaware of the fee until after the first year of the loan.Rate this question:
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- 5.
Ensuring that you know how to escalate a customer complaint is helping meet our mandate to Treat Customers Fairly.
- A.
A. True
- B.
B. False
Correct Answer
A. A. TrueExplanation
Knowing how to escalate a customer complaint is indeed helping meet the mandate of treating customers fairly. By having a clear process in place for escalating complaints, it ensures that any issues or concerns raised by customers are properly addressed and resolved in a timely manner. This demonstrates a commitment to providing excellent customer service and ensuring that customers' needs and concerns are taken seriously, ultimately leading to a fair and satisfactory resolution for the customer.Rate this question:
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- 6.
Determine if this example could possibly convey different meanings to a customer. Marketing materials use the term "FREE" in huge letters in the headline but when you read the small print, there are possible fees associated with the product.
- A.
A. No, the customer should read the fine print before making a final decision for enrolling or selecting the product or service.
- B.
B. Yes, fine print or disclosures should not be used to correct a potentially misleading headline.
Correct Answer
B. B. Yes, fine print or disclosures should not be used to correct a potentially misleading headline.Explanation
The correct answer is B because it states that fine print or disclosures should not be used to correct a potentially misleading headline. This implies that the example could indeed convey different meanings to a customer, as the headline may give the impression that the product is completely free while the fine print reveals that there are associated fees. This can be seen as a deceptive marketing tactic, as the headline is misleading and the fine print is used as a disclaimer rather than clarifying the true nature of the offer.Rate this question:
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- 7.
Is this example in agreement with the Treating Customers Fairly Principles? Sales scripts only need to include the words, "You can cancel at any time." Select the best answer.
- A.
A. Yes, since we are open 24 hours a day, the customer can call and cancel at anytime.
- B.
B. No, this example doesn’t include the required conditions for cancellation.
Correct Answer
B. B. No, this example doesn’t include the required conditions for cancellation.Explanation
The correct answer is B. No, this example doesn’t include the required conditions for cancellation. This is because the sales scripts only include the words "You can cancel at any time" but it does not specify the actual conditions or process for cancellation. Therefore, it does not meet the requirement of providing the necessary information for customers to cancel.Rate this question:
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- 8.
One of the Treating Customers Fairly Principles is to earn and retain customers’ trust by treating them the way we would want to be treated ourselves- in an open, honest and respectful manner.
- A.
A. True
- B.
B. False
Correct Answer
A. A. TrueExplanation
The given statement aligns with one of the Treating Customers Fairly Principles, which emphasizes earning and retaining customers' trust by treating them in an open, honest, and respectful manner. This principle suggests that customers should be treated the way we would want to be treated ourselves, indicating that the statement is true.Rate this question:
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- 9.
In this example, select the best answer: The customer calls in to request information about an unfamiliar charge on their account. The service representative immediately attempts to sell the Fraud Protection product and does not address his/her concern about the unfamiliar charge.
- A.
A. That’s an acceptable approach and is fair because the additional product sold would protect the customer.
- B.
B. The service representative helps the customer with his/her service request and asks if he/she needs any other assistance. After the service portion of the call is complete, the service representative clearly introduces the sale of the fraud product.
Correct Answer
B. B. The service representative helps the customer with his/her service request and asks if he/she needs any other assistance. After the service portion of the call is complete, the service representative clearly introduces the sale of the fraud product.Explanation
The correct answer is B because it shows a more customer-centric approach. The service representative addresses the customer's concern about the unfamiliar charge first and offers assistance. Only after the service portion of the call is complete, the representative introduces the sale of the fraud product. This approach prioritizes the customer's needs and concerns before attempting to sell additional products.Rate this question:
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- 10.
An example of where we would not earn the customer's trust is:
- A.
A. Advertising one product with the intention of persuading the customer to purchase another, more expensive product.
- B.
B. Providing important information about a product before the customer has committed to purchase the product
- C.
C. Advertising a product or service that is available and easily understood.
Correct Answer
A. A. Advertising one product with the intention of persuading the customer to purchase another, more expensive product.Explanation
Advertising one product with the intention of persuading the customer to purchase another, more expensive product can be seen as deceptive and manipulative. It goes against the principles of transparency and honesty in business, which are essential for earning a customer's trust. This practice may lead the customer to feel cheated or misled, damaging the relationship between the customer and the company.Rate this question:
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- 11.
An example where clear disclosure was not offered is:
- A.
A. Offering a verbal disclosure that a rate is only in effect for a short period of time and with limits and restrictions.
- B.
B. Stating there are no “out of pocket costs” without disclosing that substantial costs are financed as part of the principal balance.
Correct Answer
B. B. Stating there are no “out of pocket costs” without disclosing that substantial costs are financed as part of the principal balance.Explanation
This answer is correct because it accurately identifies a situation where clear disclosure was not offered. Stating that there are no "out of pocket costs" without disclosing that substantial costs are financed as part of the principal balance is misleading and does not provide complete and transparent information to the consumer. This lack of disclosure could potentially deceive the consumer into thinking that there are no additional costs associated with the transaction.Rate this question:
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- 12.
Treating Customers Fairly only applies to selling a product or service.
- A.
A. True
- B.
B. False
Correct Answer
B. B. FalseExplanation
Treating Customers Fairly does not only apply to selling a product or service. It is a principle that should be applied throughout the entire customer journey, including marketing, advertising, customer support, and after-sales service. It emphasizes the importance of providing transparent and honest information, ensuring fair treatment, and resolving any complaints or issues promptly and effectively. Therefore, the statement is false.Rate this question:
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- 13.
If you see something in a script, advertisement, brochure, procedure or anything else that "doesn’t look right" you should:
- A.
A. Don’t worry about it because someone else will report it.
- B.
B. Tell your manager or designated person in your line of business.
Correct Answer
B. B. Tell your manager or designated person in your line of business.Explanation
If you come across something that "doesn't look right" in a script, advertisement, brochure, procedure, or any other material, it is important to inform your manager or designated person in your line of business. This is because they have the authority and responsibility to address and rectify any errors or inconsistencies. Ignoring the issue and assuming someone else will report it can lead to misinformation or confusion, which can have negative consequences for the business or organization.Rate this question:
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- 14.
When reading a scripted disclosure, you introduce the required text by stating, "This will just take a minute, bear with me because they make me read this." Select the best answer.
- A.
A. This approach is acceptable as long as I read each word verbatim.
- B.
B. Another approach is to explain the importance of legal disclosures, for example, “let me offer important points to consider about this offer.”
Correct Answer
B. B. Another approach is to explain the importance of legal disclosures, for example, “let me offer important points to consider about this offer.”Explanation
The correct answer is B because it suggests an alternative approach to introducing the scripted disclosure. Instead of using a generic statement, it recommends explaining the importance of the legal disclosures to engage the audience and make them more receptive to the information. This approach helps to establish credibility and encourages the listeners to pay attention to the content being presented.Rate this question:
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Jun 20, 2023Quiz Edited by
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Dec 17, 2013Quiz Created by
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