Connect Chapter 6 - Smartbook Study Guide
What is the procedure under consumer credit laws when denial of credit is discriminatory?
-Sue the creditor. -Make the creditor aware of your understanding of the law. -File a complaint with the government.
How does the Fair Credit Billing Act protect consumer credit ratings?
By allowing consumers to challenge charges that are false and avoid having delinquent charges added to their credit history.
The law that protects consumers by setting standards for correcting billing mistakes and allowing customers to avoid paying for defective merchandise is called the ______.
Fair Credit Billing Act.
True or False: If you find a problem in your bill, you should notify the credit bureau in writing within 60 days.
False.
The Fair Credit Billing Act's underlining purpose is:
To protect consumer credit ratings.
To improve your credit score, it is important to:
-Understand the computation of outstanding debt. -Avoid applying for new credit cards. -Pay your bills on time.
If you have a complaint about a business while dealing with identity theft issues, you can file a complaint with:
The Federal Trade Commission.
True or False: When suing a creditor, you can sue for actual damages and $15,000 in punitive damages.
False.
What does the Fair Credit Billing Act (FCBA) do?
It protects consumers with billing mistakes and provides assistance in avoiding payment for defective merchandise.
The Fair Credit Billing Act provides that you may withhold payment on damaged or defective goods or poor services you have purchased with a credit card as long as you have:
Made a sincere attempt to resolve the problem with the merchant.
How does the Secret Service fight identity theft?
The Secret Service typically focuses on financial fraud cases with large amounts of money involved.
The Act that prohibits creditors from giving inaccurate information or denying consumers the right to cancel credit accounts is:
The Truth in Lending Act.
When referring to credit, character means:
The borrower's attitude toward credit obligations.
If you purchase a new but defective item that the business will not accept as a return, what does the FCBA require?
The credit card company will allow you to withhold payment on such an item because it is defective.
True or False: The ECOA covers your mortgage application and bans discrimination based on race, color, age, sex, marital status, national origin, and several other factors.
True.
The ________ in Lending Act prohibits creditors from giving inaccurate information or denying consumers the right to cancel credit accounts.
Truth.
