QFA Loans (LIA/IOB, Ireland)

Under the Consumer Credit Act 1995 in Ireland, what is the standard cooling-off period during which a consumer may withdraw from a regulated credit agreement?

• A5 working days
• B10 calendar days
• C14 calendar days
• D30 calendar days

A consumer wants to bypass the cooling-off period of a personal credit agreement governed by the Consumer Credit Act 1995 to obtain funds immediately. Which of the following is correct?

• AThe cooling-off period cannot be bypassed under any circumstances.
• BThe consumer can waive the cooling-off period by signing a separate written statement con…
• CThe lender can automatically waive the cooling-off period if the borrower has a good cred…
• DThe cooling-off period is automatically waived for all online applications.

Under the European Union (Consumer Credit Agreements) Regulations 2010, what cooling-off period applies to a personal loan, and can it be waived?

• A10 calendar days; it can be waived in writing.
• B14 calendar days; it can be waived if funds are drawn down early.
• C14 calendar days; it cannot be waived.
• D30 calendar days; it cannot be waived.

What is the maximum limit of credit covered by the European Union (Consumer Credit Agreements) Regulations 2010 in Ireland?

• A€50,000
• B€75,000
• C€100,000
• DThere is no upper limit

A borrower is offered a personal loan of €10,000 with a flat interest rate of 6% per annum over 3 years, or another loan with an Annual Percentage Rate (APR) of 9.5%. How should the adviser compare these rates?

• AThe flat rate of 6% is cheaper because 6% is lower than 9.5%.
• BThe APR of 9.5% is cheaper because it includes tax relief.
• CThe flat rate must be converted to its APR equivalent to make a valid comparison, as the…
• DBoth rates will result in the exact same cost of credit over the 3-year term.

Which of the following entities meets the definition of a 'consumer' under the Consumer Credit Act 1995?

• AA sole trader borrowing €15,000 to purchase a delivery van for their business.
• BA limited company borrowing €50,000 for office refurbishment.
• CAn individual borrowing €10,000 to purchase a family car.
• DA partnership borrowing €20,000 to buy office equipment.

John enters into a Hire Purchase (HP) agreement for a car with a total hire purchase price of €24,000. After paying €10,000, his financial circumstances change and he wants to terminate the agreement under the 'half-rule' (Section 63). What is his remaining liability?

• AHe can return the car and has no further liability.
• BHe must pay €2,000 to bring his total payments up to half the HP price, and then return t…
• CHe must pay €14,000 to clear the remaining balance in full.
• DHe must pay €4,000 to terminate the agreement.

Under a standard Hire Purchase agreement in Ireland, when does legal ownership of the goods pass from the finance company to the consumer?

• AImmediately upon signing the agreement.
• BAs soon as the consumer pays at least 50% of the hire purchase price.
• COnly after the final instalment and the 'option to purchase' fee have been paid.
• DImmediately upon delivery of the goods.

In a Personal Contract Plan (PCP) car finance agreement, what is the balloon payment at the end of the term officially called, and what does it represent?

• AThe Guaranteed Minimum Future Value (GMFV); it represents the estimated residual value of…
• BThe Termination Fee; it represents the fee to return the car.
• CThe Option Fee; it represents the cost of road tax.
• DThe Equity Payment; it represents the profit margin of the dealer.

Under Section 63 of the Consumer Credit Act 1995, to which of the following credit products does the 'half-rule' apply?

• APersonal unsecured bank loans.
• BBank overdrafts and credit cards.
• CHire Purchase and Personal Contract Plan (PCP) agreements.
• DMortgages and home reversion agreements.

A consumer exercises their right of withdrawal from a personal loan under the EU Consumer Credit Regulations within the 14-day cooling-off period. What must the consumer do next?

• AReturn the funds immediately with no interest liability.
• BPay back the principal amount plus the interest accrued from the drawdown date to the rep…
• CForfeit a cancellation fee of 1% of the loan amount.
• DWait for the lender to debit their account for the principal amount on the next scheduled…

What is the primary difference between a Consumer Hire agreement and a Hire Purchase agreement?

• AConsumer Hire agreements have a maximum term of 1 year.
• BUnder a Consumer Hire agreement, the consumer never has the option to purchase the goods…
• CHire Purchase agreements do not charge interest.
• DConsumer Hire agreements are not regulated by the Consumer Credit Act 1995.

A lender publishes an advertisement for personal loans showing a special interest rate of 5.5% per annum. What else must be prominently displayed in the advertisement under Irish regulations?

• AA representative APR, the cost of credit, and the total amount payable.
• BThe lender's share price on the Irish Stock Exchange.
• CThe name of the credit reference agency used by the lender.
• DA declaration that the loan is interest-free for the first 6 months.

In Ireland, what is the minimum legal age at which an individual can enter into a binding regulated consumer credit agreement?

• A16 years
• B18 years
• C21 years
• DThere is no legal minimum age

How does a Credit Sale agreement differ from a Hire Purchase agreement?

• AA Credit Sale agreement has a lower interest rate.
• BUnder a Credit Sale agreement, ownership of the goods passes to the consumer immediately…
• CCredit Sale agreements are only used for property transactions.
• DCredit Sale agreements do not require a cooling-off period.

What is the legal implication of 'joint and several liability' in a joint consumer personal loan in Ireland?

• AEach borrower is only responsible for 50% of the loan repayments.
• BIf one borrower defaults, the other is only liable for their half of the debt.
• CThe lender can legally demand full repayment of the entire outstanding debt from either b…
• DThe loan is automatically written off if one of the borrowers passes away.

A student applies for a personal loan of €5,000, and the bank requires a parent to act as a guarantor. What is the legal role of the guarantor?

• AThe guarantor is only a witness to the signature and has no financial liability.
• BThe guarantor is only liable if the student passes away.
• CThe guarantor agrees to repay the outstanding debt in full if the primary borrower (the s…
• DThe guarantor becomes the joint owner of any goods purchased with the loan.

Under what circumstances would a lender charge a 'referral fee' on a personal bank account?

• AWhen a customer refers a friend to open a new account.
• BWhen the bank refers the customer to a debt management agency.
• CWhen a transaction is presented on the account that would exceed the approved overdraft l…
• DWhen the customer requests a copy of their bank statement.

Under the European Union (Consumer Credit Agreements) Regulations 2010, what is the maximum early repayment compensation a lender can charge on a fixed-rate personal loan if the period between early repayment and termination is more than one year?

• A0.5% of the amount repaid early.
• B1.0% of the amount repaid early.
• C3.0% of the amount repaid early.
• DNo early repayment charge is permitted on personal loans.

A consumer uses a credit card that offers 'up to 56 days interest-free' on purchases. How is this period calculated?

• AIt is 56 days from the date of each individual purchase.
• BIt is calculated from the start of the billing cycle, provided the balance is paid in ful…
• CThe customer has a flat 56 days to pay off any transaction before interest begins to accr…
• DInterest-free periods only apply to cash advances, not purchases.

Under the Consumer Protection Code (CPC), what warning must a lender provide to a consumer who is considering consolidating multiple short-term debts into a long-term mortgage?

• AA warning that consolidating debt will negatively affect their credit rating on the CCR.
• BA warning that by consolidating their debt over a longer term, they may significantly inc…
• CA declaration that consolidated debt is exempt from stamp duty.
• DA statement that the loan is interest-free for the first 12 months.

Which of the following is a key legal difference between secured and unsecured consumer credit?

• ASecured credit does not require a credit check.
• BIf the borrower defaults on secured credit, the lender has a legal claim on a specific as…
• CUnsecured credit is only available to commercial entities.
• DSecured credit is exempt from the Consumer Credit Act.

Mary has a Hire Purchase agreement for a machine. The total hire purchase price is €10,000, and she has already paid €6,000. She decides to terminate the agreement and return the machine. Which of the following is correct?

• AShe is entitled to a refund of €1,000 because she paid more than half.
• BShe can return the goods and is not liable for further payments, but she will not receive…
• CThe half-rule does not apply once you have paid more than 50%.
• DShe must pay another €1,000 to terminate.

A bank fails to provide a consumer with a written copy of a regulated personal credit agreement within the timeframe specified in the Consumer Credit Act 1995. What is the legal consequence?

• AThe agreement is automatically void and the borrower keeps the money with no obligation t…
• BThe agreement is unenforceable against the consumer unless the lender obtains a court ord…
• CThe lender can charge double the interest rate as compensation.
• DThere are no consequences if the loan has already been drawn down.

Which of the following is defined as a revolving credit facility under Irish banking practice?

• AA 5-year fixed-term personal loan.
• BAn overdraft or a credit card account.
• CA residential annuity mortgage.
• DA hire purchase agreement.

Under the Central Bank of Ireland's macroprudential mortgage measures, what is the standard Loan-to-Value (LTV) limit for a First-Time Buyer purchasing a primary residence?

• A80%
• B85%
• C90%
• D95%

Following the macroprudential rule updates, what is the standard Loan-to-Value (LTV) limit for a Second and Subsequent Buyer (SSB) of a primary private residence in Ireland?

• A70%
• B80%
• C90%
• D100%

What is the standard Loan-to-Value (LTV) limit set by the Central Bank of Ireland for Buy-to-Let (residential investment) mortgage applications?

• A50%
• B70%
• C80%
• D90%

Under the Central Bank of Ireland's macroprudential measures, what is the standard Loan-to-Income (LTI) limit for First-Time Buyers of residential property?

• A3.5 times gross annual income
• B4.0 times gross annual income
• C4.5 times gross annual income
• DThere is no standard LTI limit for first-time buyers

What is the standard Loan-to-Income (LTI) limit set by the Central Bank of Ireland for Second and Subsequent Buyers (SSBs) of residential property?

• A3.0 times gross annual income
• B3.5 times gross annual income
• C4.0 times gross annual income
• D4.5 times gross annual income

A first-time buyer couple has a combined gross annual income of €85,000. Under standard Central Bank macroprudential rules, what is the maximum mortgage amount they can borrow without an exception?

• A€297,500
• B€340,000
• C€382,500
• D€425,000

What percentage of a lender's total residential mortgage lending to First-Time Buyers is permitted to exceed the standard Central Bank limits (LTV/LTI allowances)?

• A5%
• B10%
• C15%
• D20%

Which of the following is correct regarding a principal home bridging loan (maximum 18-month term) under the Central Bank of Ireland's mortgage regulations?

• ABridging loans are completely exempt from the Loan-to-Value (LTV) limits.
• BBridging loans are exempt from the standard Loan-to-Income (LTI) limits.
• CBridging loans can only be offered by local authorities.
• DBridging loans are capped at a maximum of 2 times gross annual income.

For how long is a property valuation report typically valid under standard Irish mortgage lender guidelines?

• A1 month
• B2 months
• C4 months
• D12 months

To qualify for the Irish Government's Help to Buy (HTB) scheme, what is the minimum Loan-to-Value (LTV) ratio required on the mortgage?

• A50%
• B60%
• C70%
• D80%

Under the Help to Buy (HTB) scheme, what is the maximum tax rebate a first-time buyer can receive when purchasing a qualifying new-build home?

• A€10,000 or 5% of the purchase price.
• B€20,000 or 10% of the purchase price.
• C€30,000 or 10% of the purchase price.
• D€50,000 or 20% of the purchase price.

A buyer is using the First Home Scheme (FHS) to help purchase a new-build home. What is the maximum equity share the scheme can provide if the buyer is also using the Help to Buy (HTB) scheme?

• A10%
• B20%
• C30%
• D50%

Under Section 126 of the Consumer Credit Act 1995, what are lenders in Ireland generally required to ensure is in place before granting a housing loan?

• AA structural survey of the property.
• BA mortgage protection life assurance policy.
• CA payment protection insurance (PPI) policy.
• DA personal guarantee from a third party.

Which of the following is a statutory exception to the requirement for mortgage protection life insurance under Section 126 of the Consumer Credit Act 1995?

• AThe borrower is a first-time buyer.
• BThe borrower has a gross income of over €100,000.
• CThe borrower is aged over 50 years at the time the loan is made.
• DThe loan term is less than 25 years.

Under Section 126 of the Consumer Credit Act 1995, why are lenders exempt from requiring mortgage protection insurance on Buy-to-Let properties?

• ABecause Buy-to-Let loans are commercial lending and not covered by the Act.
• BBecause the statutory requirement only applies if the property is the borrower's principa…
• CBecause BTL mortgages are always covered by the lender's group insurance.
• DBecause BTL interest rates are higher.

An applicant for a residential mortgage has a severe medical condition and has been declined for life assurance by multiple insurers. Can the lender legally proceed with the mortgage?

• ANo, the lender is legally prohibited from issuing the loan without life cover.
• BYes, because being unable to obtain life assurance on medical grounds (or if the premium…
• CYes, but only if a family member signs a waiver of liability.
• DNo, unless the borrower deposits cash equivalent to 50% of the loan amount as security.

Under the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR), what is the minimum duration of the statutory reflection period during which a mortgage offer is binding on the lender?

• A10 days
• B14 days
• C30 days
• D60 days

Which standard document must lenders in Ireland provide to mortgage applicants to detail the specific terms, costs, and interest rate of the mortgage offer in a standardized format?

• AThe Standard Financial Statement (SFS)
• BThe European Standardised Information Sheet (ESIS)
• CThe Key Information Document (KID)
• DThe Consumer Credit Disclosure (CCD)

How is a tracker mortgage interest rate calculated and adjusted?

• AIt is set at the discretion of the lender based on their funding costs.
• BIt is pegged to the European Central Bank (ECB) main refinancing rate plus a fixed margin…
• CIt is linked directly to the consumer price index (inflation rate) in Ireland.
• DIt tracks the Euribor rate and changes every 12 months.

Which of the following best describes the payment structure of a standard annuity (repayment) mortgage over its term?

• AThe monthly payments increase each year, with the interest portion remaining constant.
• BThe monthly payments are constant, with the interest portion decreasing and the principal…
• COnly interest is paid during the term, and the principal is repaid in a lump sum at the e…
• DThe principal repayment is constant, with the interest payment increasing over the term.

Under a lifetime mortgage (equity release) scheme in Ireland, how is interest typically handled?

• AInterest is paid monthly, and the principal is repaid on death.
• BInterest is rolled up (compounded) and added to the loan balance, with the total debt rep…
• CInterest is waived if the borrower lives in the property for more than 10 years.
• DThe interest rate is subsidized by the government.

What is the key difference between a Home Reversion agreement and a Lifetime Mortgage (Equity Release) product?

• AHome Reversion is a government scheme, whereas Lifetime Mortgages are commercial.
• BUnder Home Reversion, the homeowner sells a percentage share of their property's equity t…
• CHome Reversion requires monthly repayments.
• DHome Reversion only applies to apartments.