ch. 15
The __________ requires that credit must be extended to all creditworthy applicants regardless of sex, marital status, age, race, color, religion, national origin, good-faith exercise of rights under the Consumer Credit Protection Act, and receipt of public assistance.
Equal Credit Opportunity Act
Which of the following is correct regarding the Federal Trade Commission's (FTC's) authority in response to a citizen complaint alleging suspect trade practices?
It may drop the matter.
Procedural unconscionability
It usually arises from a lack of choice or a lack of knowledge of one or more parties to a contract.
Identify a true statement about the Equal Credit Opportunity Act (ECOA).
It was formed as a response to discrimination in credit against women.
Which of the following provide(s) recourse for consumers whose new vehicles turn out to be defective such that they cannot be repaired after a reasonable effort?
State lemon laws
Which law forbids lenders from issuing credit cards to individuals under age 21 without a parent as cosigner or without proof the applicant can make payments?
The CARD Act
In the United States, which agency is responsible for writing and enforcing rules covering consumer financial products and services including mortgages, credit cards, payday loans, and loan servicing?
The Consumer Financial Protection Bureau (CFPB)
Which of the following provides remedies for lost or stolen debit and ATM cards, billing errors, and other problems involving ATMs, point-of-sale machines, electronic deposits, and the like?
The Electronic Fund Transfer Act (EFTA)
Which of the following provides consumers the right to address billing errors associated with credit card and certain other "open-end" credit transactions?
The Fair Credit Billing Act (FCBA)
Federal laws limit a card holder's liability for a credit card that has been lost or stolen to an amount not to exceed __________.
$50
Pursuant to the Electronic Fund Transfer Act, consumer liability for the misuse of missing debit and ATM cards is capped at __________ if the consumer reports the loss within __________ days of learning of the loss.
$50, two
According to a 2013 Federal Trade Commission (FTC) survey, approximately how many American adults were the victims of consumer fraud during 2011?
25.6 million
According to the Fair Credit Reporting Act (FCRA), a consumer has the right to place which of the following on his credit report that prohibits the credit reporting agency from releasing his information without his authorization?
A security freeze
If the Federal Trade Commission (FTC) issues a formal complaint regarding suspect trade practices, the matter proceeds essentially as which of the following?
A trial conducted before an administrative law judge
Which type of bankruptcy is limited to those with steady income and relatively limited debt?
Adjustment of debts
Identify the true statements about the federal Fair Credit Reporting Act (FCRA).
Anyone using information from a CRA and taking adverse action against a person must notify the person and tell him where it secured the information. All inaccurate information must be corrected or removed from the consumer's credit file within 30 days. When requested, a credit reporting agency must give an individual the information in her credit file.
Identify a true statement about the Fair Credit Billing Act (FCBA).
At the consumer's request, the CRA must give the consumer the information in her file and reveal her credit score.
Which of the following organizations administer(s) the Fair Debt Collection Practices Act (FDCPA)?
Both the CFPB and the FTC
The type of bankruptcy known as a liquidation petition is a:
Chapter 7
Which federal agency is responsible for reducing the risks in using consumer products such as furniture, toys and bicycles?
Consumer Product Safety Commission (CPSC)
What are the practices prohibited by the federal Fair Debt Collection Practices Act (FDCPA) to protect consumers?
Contact with debtors during inconvenient hours Contact with debtors in an abusive or deceptive manner Repeated phone calls with the intent to harass
The __________ provides a mechanism to deal with the billing errors that accompany credit card and certain other "open-end" credit transactions.
Fair Credit Billing Act
Which of the following may use a Chapter 13 bankruptcy?
Individual
Identify a true statement about the Federal Trade Commission (FTC).
It has powerful quasi-legislative roles.
Substantive unconscionability
It involves contracts that have terms completely inconsistent with the relative risks assumed by the parties.
Identify a true statement about the Credit Card Accountability, Responsibility, and Disclosure Act (CARD).
It is designed to reduce student credit card debt.
Which of the following is correct regarding the Federal Trade Commission's (FTC's) quasi-legislative power?
It is extensive.
Federal bankruptcy reform law in 2005 did which of the following?
It pushed more individuals into Chapter 13 bankruptcy, as opposed to Chapter 7.
Which of the following are not forbidden to debt collectors under the Fair Debt Collection Practices Act (FDCPA)?
Lawful collection efforts
The Federal Trade Commission (FTC) performs which of the following responsibilities by promulgating trade regulations to implement the intent of broadly drawn congressional enactments?
Legislative
Which of the following interprets the Truth in Lending Act?
Regulation Z
Which of the following laws is intended to combat bias in lending?
The Equal Credit Opportunity Act (ECOA)
Identify the practices prohibited by the federal Fair Debt Collection Practices Act (FDCPA) to protect consumers.
Use of obscene language Contact with third parties other than for the purpose of locating the debtor Use of or threats to use physical force
A watch manufacturer advertises a watch as being 100% waterproof. This is considered
a statement of fact.
The Credit Card Accountability, Responsibility, and Disclosure Act
forbids lenders from issuing credit cards to those under age 21 without a parent as cosigner or without proof the applicant can make payments.
In the United States, laws designed to provide recourse for consumers whose new vehicles turn out to be defective such that they cannot be repaired after a reasonable effort are known as __________.
lemon laws
The __________ provides consumers with certain protections when it comes to credit reports.
Fair Credit Reporting Act
True or false: Under the Electronic Fund Transfer Act (EFTA), liability for misuse of missing cards is capped at $500 if the consumer provides notice within two business days after learning of the loss.
False
Identify the elements that a plaintiff must prove to establish a fraud claim.
False statement of a material fact Knowledge of the falsity by the wrongdoer Intent to deceive the victim Injury suffered by the victim
Which federal agency was created to prevent unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce?
Federal Trade Commission (FTC)
An intentional deception designed to secure an unfair or unlawful gain is:
Fraud
Which of the following was created in 1914 to stop unfair methods of competition and deceptive practices affecting commerce?
The Federal Trade Commission (FTC)
Which of the following is designed primarily to assure the full disclosure of credit terms for consumers?
The Truth in Lending Act
Identify a true statement about civil consumer fraud.
The victim ordinarily is entitled to rescind the transaction in question and to seek damages.
Identify a true statement about unconscionable contracts.
They are contracts so unfair or oppressive that judicial intervention becomes necessary.
Regarding annual bankruptcy filings (both personal and business), what occurred in 2018?
They fell to their lowest point in nearly a decade.
Identify a true statement about lemon laws.
They often cover new cars up to 24,000 miles after purchase.
Identify a responsibility of the Consumer Financial Protection Bureau (CFPB).
To provide financial education to consumers
