American Bankers Association CRCM Exam - 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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Levi

4 months ago

I thought they had to provide a new initial disclosure for month-to-month leases.

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Jaime

5 months ago

Wait, are you sure? That sounds a bit off to me.

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Tamala

5 months ago

Actually, they might need to disclose something after six months.

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Anglea

5 months ago

Totally agree, no new disclosures needed!

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Loreta

5 months ago

I think the bank has no disclosure responsibilities now.

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Ezekiel

6 months ago

I’m leaning towards the idea that they need to disclose the estimated residual value after six months, but I could be mixing it up with another topic.

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Clorinda

6 months ago

This situation feels similar to practice questions we did on lease extensions. I think they might need to provide a new initial disclosure.

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Dalene

6 months ago

I remember something about needing to provide disclosures after a certain period, but I'm not sure if it's six months or something else.

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Micheal

6 months ago

I think the bank might not have any disclosure responsibilities now since they extended the lease without fees.

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Denise

6 months ago

I'm a little confused on this one. Does the bank have any new disclosure requirements just because they're extending the lease on a month-to-month basis? I'm not sure if that changes things or not. I'll have to think it through carefully.

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Allene

6 months ago

Okay, I think I've got this. Since the original lease has ended and they're just doing a month-to-month extension, the bank doesn't need to provide any new disclosures. The initial disclosures from the original lease should still apply. I'm going with A.

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Lavonne

6 months ago

Hmm, this seems like a tricky one. I'm leaning towards option A, since the lease has already terminated and they're just extending it on a month-to-month basis without any additional fees. But I'll double-check the details to make sure.

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Rasheeda

6 months ago

I'm not totally sure about this one, but I think the key is figuring out what the bank's disclosure responsibilities are for a month-to-month lease extension. I'll need to review the relevant regulations carefully.

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Dottie

6 months ago

This seems straightforward to me. Since the original lease has terminated, the bank would need to provide a brand new set of initial disclosures for the month-to-month extension. I'm going with C on this one.

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Bo

6 months ago

This seems like a straightforward question about tracking time for service jobs. I think the key is to understand how the different objects (Service Appointment, Work Order Line Item) are related and how that impacts the time tracking.

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Thersa

12 months 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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Earnestine

10 months ago

Hopefully Roberta can find a better car soon. This situation seems stressful.

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Felicidad

10 months ago

I agree, the bank should be transparent about the car's value. Roberta deserves to know.

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Dick

10 months ago

I think the bank should disclose the estimated residual value at the end of six months. It's only fair to Roberta.

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Lorriane

11 months ago

I know, month-to-month leases can be risky. Who knows how long that car will last.

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Ernest

12 months 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

1 year 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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Dino

11 months ago

I agree, it's important for transparency in the agreement.

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Katheryn

11 months ago

I think they should disclose any changes in terms, so C sounds right.

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Dean

1 year 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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