American Bankers Association Exam CRCM Topic 5 Question 97 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 97
Topic #: 5

[All CRCM Questions]

Roberta Milton's car lease with First National Bank reached its termination on August 1. Roberta and the bank agreed to extend the lease on a month-tomonth basis without charging her a fee for doing so. What disclosure responsibilities does the bank have now?

ANone are needed now.

BNone, until after six months of the month-to-month lease

CThe bank must make an entirely new initial disclosure

DThe bank must disclose the estimated residual value at the end of six months

Show Suggested Answer

Suggested Answer: D

by Melita at Sep 18, 2024, 02:38 PM

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Thersa

2 days ago

A month-to-month lease? I bet Roberta's car is a real clunker by now. The bank's just waiting for it to fall apart on the highway!

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Ernest

3 days ago

Hmm, I'm not sure. This seems like a tricky one. Maybe the bank should at least let Roberta know the estimated residual value? D sounds good to me.

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Rashida

14 days ago

But what if the bank decides to change the terms after a few months? Shouldn't they have to disclose that? I'm going with C.

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Dean

15 days ago

I think the correct answer is A. The bank doesn't need to make any new disclosures since the lease is just continuing on a month-to-month basis. It's not a whole new lease agreement.

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