MHCT Session 1.4 Knowledge Check

MHCT Knowledge Check 1.4

1 / 6

1) Match the items with its corresponding category with respect to pre- and post- identity theft.

1) Initiate a fraud alert

2) Shred financial documents

3) Cancel credit cards and order new bank cards

4) File a police report.

5) Review bank and credit card statements.

6) Contact the FTC (Federal Trade Commission).

Safeguard personal identity information.

2 / 6

2) Which is least urgent step for a member to take in the event of identity theft?

1) Create an identity theft report.

2) Contact the insurance company.

3) Order credit reports from the credit reporting agencies.

4) Place a fraud alert.

3 / 6

3) In some cases, bankruptcy may be the best option for a member. Which option would be the least appropriate for a housing counselor to present as an alternative to bankruptcy?

1) Debt management plan (DMP)

2) Household budget adjustment

3) Loan modification

4) Negotiation with creditors

5) Wait seven years for accounts to drop from credit report

4 / 6

4) Match each feature with the type of bankruptcy, whether Chapter 7 or Chapter 13.

1) Liquidation of assets

2) Allows members to retain certain secured debts, such as a house or car

3) Involves a repayment plan

4) Requires a means test

5) May be a better option for a member with no assets

6) May be a requirement for a member with regular income

5 / 6

5) It is the responsibility of the counselor to determine whether or not a member should file bankruptcy.

1) True

2) False

6 / 6

6) Match the issue with the topic of discussion.

1) Member with low income and good credit receives loan offer with terms that are twice the market rate.

2) Member with low income has fallen behind on several unsecured loans and now faces foreclosure, but wants to try to keep his family in the home.

3) Member receives multiple collection notices for unknown accounts/companies.

4) Unemployed member faces eviction and multiple credit card debts and other debts due to medical emergency.

Your score is

Pre- Identity Theft	Post- Identity Theft
Shred financial documents—thieves can steal discarded financial paperwork to obtain pertinent identity information.	Cancel credit cards and order new bank cards—canceling cards will restrict all access gained by the identity thief. In some cases, a member may want to close certain accounts altogether.
Review bank and credit card statements—monitoring statements and balances to verify account activity will help alert a potential victim of any suspicious transactions.	File a police report—a police report will be necessary to provide proof of theft to some companies and financial institutions.
Safeguard personal identity information—the most valuable information a thief can obtain is a social security number or birth certificate, so it is important to keep this information secure.	Contact the FTC—it is important to obtain an Identity Theft Affidavit from the FTC to include with the police report and support the claim.
	Initiate a fraud alert—though it is possible to place a fraud alert to prevent identity theft, it is an essential step to take after a theft takes place.

MHCT Session 1.4 Knowledge Check

(E) Wait seven years for accounts to drop from credit report

(B) False