FiCEP Consumer Protection Laws 2

Question 1

Under the Fair Debt Collection Practices Act, which action by a debt collector is prohibited?

Accepted Answer

Contacting a debtor at their workplace after being told not to

Answer

Calling a debtor between 8 AM and 9 PM

Answer

Sending a written validation notice within five days

Answer

Reporting the debt to a credit bureau

Question 2

What does the Truth in Lending Act primarily require lenders to disclose?

Accepted Answer

The annual percentage rate and total cost of credit

Answer

The borrower's credit score

Answer

The lender's profit margin

Answer

The borrower's debt-to-income ratio

Question 3

How long does a consumer have to dispute a credit report error under the Fair Credit Reporting Act?

Accepted Answer

There is no time limit for filing disputes

Answer

30 days

Answer

60 days

Answer

90 days

Question 4

Which federal law gives consumers the right to one free credit report annually from each major bureau?

Accepted Answer

Fair and Accurate Credit Transactions Act

Answer

Equal Credit Opportunity Act

Answer

Consumer Financial Protection Act

Answer

Gramm-Leach-Bliley Act

Question 5

Under the Equal Credit Opportunity Act, which factor can a lender NOT use to deny credit?

Accepted Answer

Applicant's marital status

Answer

Applicant's income level

Answer

Applicant's employment history

Answer

Applicant's existing debt obligations

Question 6

What remedy does the Fair Credit Billing Act provide for unauthorized credit card charges?

Accepted Answer

The consumer can dispute and liability is limited to $50 for unauthorized use

Answer

The consumer must pay then seek reimbursement

Answer

The consumer must close the account immediately

Answer

The consumer has no recourse after 15 days