Who in the world thought this was a good idea!? I can hardly think of a less secure way to ask security questions. You should name and shame; there’s a minimum bar everyone should uphold and this is far below it.
The problem they were trying to solve is someone typing in “Woodbridge Lane” as the answer and then later typing “Wood Bridge” or “Woodbridge Ln” or “Woodbridge Ln.” when prompted.
This was the wrong solution.