CERTIFIED REGULATORY
COMPLIANCE MANAGER
CRCM PRACTICE EXAM
2026 PART 1 QUESTIONS
1-40 Question 1: A bank receives a consumer's oral notice that an ATM withdrawal on the consumer's statement was unauthorized. What should the bank do �rst under Regulation E?
Choices:
1) Begin the error-resolution process based on the oral notice 2) Reverse every ATM withdrawal made during the statement cycle 3) Wait until the consumer �les a police report 4) Require a written a�davit before beginning any investigation
Correct Answer: Begin the error-resolution process based on the oral notice
Explanation: Regulation E permits a consumer to provide notice of an error orally or in writing.The institution must begin its error-resolution process when it receives su�cient notice and may request written con�rmation only under the rule's conditions.Page 1
Question 2: A consumer reports a lost debit card two business days after learning of the loss. Assuming no greater loss occurred before notice, what is the consumer's maximum liability under Regulation E?
Choices:
1) $50
2) Zero in every case 3) The full account balance
4) $500
Correct Answer: $50
Explanation: If the consumer noti�es the �nancial institution within two business days after learning of the loss or theft of an access device, Regulation E generally limits liability to no more than $50.Question 3: A bank cannot complete its Regulation E investigation within 10 business days and wants additional time. What action generally allows the bank to extend the investigation period?
Choices:
1) Provisionally credit the consumer's account as required and continue the investigation 2) Charge the disputed amount to a suspense account without notifying the consumer 3) Close the claim and tell the consumer to re�le 4) Obtain a court order Correct Answer: Provisionally credit the consumer's account as required and continue the investigation Explanation: Regulation E generally permits additional investigation time when the institution provisionally credits the consumer for the amount at issue, subject to applicable timing and notice requirements.Page 2
Question 4: Which transaction is most clearly an electronic fund transfer covered by Regulation E?
Choices:
1) A consumer uses a debit card at a grocery store 2) A bank credits monthly interest to a savings account 3) A teller transfers funds between two accounts at the consumer's in-person request 4) A consumer writes a paper check that is processed solely as a check
Correct Answer: A consumer uses a debit card at a grocery store
Explanation: A debit-card purchase is an electronic fund transfer initiated through an electronic terminal. Transactions initiated solely by paper check and certain transfers performed by institution employees are not treated the same way under Regulation E.
Question 5: A bank plans to charge overdraft fees on one-time debit card
transactions for a consumer account. What is required before the bank may assess those fees under Regulation E's overdraft-service rule?
Choices:
1) The consumer must have had at least three overdrafts in the prior year 2) The account must have been open for at least 30 days 3) The bank must obtain approval from its primary regulator 4) The consumer must a�rmatively opt in after receiving the required notice Correct Answer: The consumer must a�rmatively opt in after receiving the required notice Explanation: For ATM and one-time debit card transactions, Regulation E generally requires the institution to provide the prescribed overdraft-service notice and obtain the consumer's a�rmative consent before charging an overdraft fee for paying those transactions.Page 3