West Virginia Mortgage Law Practice Test

Under the Consumer Credit and Protection Act, a violation that is the result of an error affecting no more than two persons will not result in liability if the error is corrected:

1. Within 30 days of discovery

2. Within 45 days of discovery

3. Within 60 days of discovery

4. Within 90 days of discovery

The correct answer is: Within 30 days of discovery

The correct answer is based on the stipulations outlined in the Consumer Credit and Protection Act, which allows for a certain level of leeway when it comes to inadvertent errors. The provision emphasizes the importance of promptly addressing any mistakes that may arise, particularly in cases that affect a limited number of individuals. When the error is identified, taking corrective action within 30 days not only demonstrates good faith on the part of the entity involved but also ensures that consumers are protected in a timely manner. This rapid response mechanism is likely established to encourage prompt remediation and maintain consumer trust in financial transactions. The shorter the correction period, the more responsibility is placed on lenders and businesses to monitor and manage their practices carefully, thereby minimizing potential harm to consumers. By adhering to this timeframe, businesses show their commitment to compliance and their dedication to operating within the legal framework designed to protect consumer rights and interests.