A.5 Consumer protection laws Flashcards
Which of the following laws established a process for consumers to dispute errors on their credit reports?A) Fair Credit Reporting ActB) Truth in Lending ActC) Fair Debt Collection Practices ActD) Consumer Credit Protection Act
Fair Credit Reporting ActExplanation: The Fair Credit Reporting Act (FCRA) requires credit reporting agencies to investigate disputes submitted by consumers and correct any errors found.
Which of the following laws requires companies to provide customers with clear and concise information about their products or services?A) Fair Credit Reporting ActB) Truth in Lending ActC) Fair Debt Collection Practices ActD) Truth in Advertising Act
Truth in Advertising Act Advertising Act requires companies to provide customers with truthful and non-misleading information about their products or services.
Which of the following laws requires companies to provide customers with a 3-day cooling-off period during which they can cancel a contract without penalty?A) Truth in Lending ActB) Fair Debt Collection Practices ActC) Fair Credit Billing ActD) Federal Trade Commission’s Cooling-Off Rule
Federal Trade Commission’s Cooling-Off RuleExplanation: The Federal Trade Commission’s Cooling-Off Rule requires companies to provide customers with a 3-day cooling-off period during which they can cancel a contract without penalty.
Which of the following laws prohibits debt collectors from harassing, abusing, or misleading customers?A) Fair Credit Reporting ActB) Truth in Lending ActC) Fair Debt Collection Practices ActD) Consumer Credit Protection Act
Fair Debt Collection Practices ActExplanation: The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from harassing, abusing, or misleading customers, and requires them to provide certain information when collecting debts.
Which of the following laws requires lenders to disclose the true cost of credit to consumers?A) Fair Credit Reporting ActB) Truth in Lending ActC) Fair Debt Collection Practices ActD) Fair Credit Billing Act
Truth in Lending ActExplanation: The Truth in Lending Act (TILA) requires lenders to disclose the true cost of credit to consumers, including interest rates, fees, and other charges.
Which of the following laws prohibits companies from discriminating against customers based on their race, religion, gender, or national origin?A) Fair Credit Reporting ActB) Equal Credit Opportunity ActC) Fair Debt Collection Practices ActD) Fair Housing Act
Equal Credit Opportunity ActExplanation: The Equal Credit Opportunity Act (ECOA) prohibits companies from discriminating against customers based on their race, religion, gender, or national origin when providing credit.
Which of the following laws requires companies to provide customers with a notice of their privacy policies?A) Gramm-Leach-Bliley ActB) Fair Credit Reporting ActC) Fair Debt Collection Practices ActD) Consumer Credit Protection Act
Gramm-Leach-Bliley ActExplanation: The Gramm-Leach-Bliley Act requires companies to provide customers with a notice of their privacy policies and to protect the confidentiality of customer information.
Which of the following laws prohibits companies from making false or misleading claims about their products or services?A) Truth in Advertising ActB) Fair Credit Reporting ActC) Fair Debt Collection Practices ActD) Fair Credit Billing Act
Truth in Advertising ActExplanation: The Truth in Advertising Act prohibits companies from making false or misleading claims about their products or services, and requires them to provide customers with accurate information.
Which of the following laws requires companies to provide customers with a written explanation of their rights and responsibilities when using electronic funds transfer services?A) Electronic Funds Transfer ActB) Fair Credit Reporting ActC) Fair Debt Collection Practices ActD) Fair Credit Billing Act
Electronic Funds Transfer ActExplanation: The Electronic Funds Transfer Act (EFTA) requires companies to provide customers with a written explanation of their rights and responsibilities when using electronic funds transfer services, such as debit cards, ATM transactions, and direct deposits.
Which of the following laws prohibits companies from engaging in unfair, deceptive, or abusive practices when providing financial products or services?A) Consumer Financial Protection ActB) Fair Credit Reporting ActC) Fair Debt Collection Practices ActD) Fair Credit Billing Act.
Consumer Financial Protection ActExplanation: The Consumer Financial Protection Act (CFPA) prohibits companies from engaging in unfair, deceptive, or abusive practices when providing financial products or services, and establishes the Consumer Financial Protection Bureau to enforce consumer protection laws.
John purchased a car from a dealer and later found out that the car had been in a serious accident and had significant damage that was not disclosed to him. Which of the following laws provides John with a remedy for this situation?A) Truth in Lending ActB) Fair Debt Collection Practices ActC) Fair Credit Reporting ActD) Magnuson-Moss Warranty Act
Magnuson-Moss Warranty ActExplanation: The Magnuson-Moss Warranty Act requires dealers to provide a written warranty for new cars and prohibits them from disclaiming or modifying implied warranties. John can file a claim under this law to seek remedies for the undisclosed damage.
Emily received a call from a debt collector who used abusive language and threatened to garnish her wages if she didn’t pay her debt immediately. Which of the following laws prohibits debt collectors from engaging in such behavior?A) Fair Credit Reporting ActB) Truth in Lending ActC) Fair Debt Collection Practices ActD) Consumer Credit Protection Act
Fair Debt Collection Practices ActExplanation: The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive language or threatening consumers and requires them to provide certain information when collecting debts.
Adam received a loan from a lender that charged him a higher interest rate than his credit score warranted. Which of the following laws prohibits lenders from discriminating against consumers based on their credit history?A) Fair Credit Reporting ActB) Truth in Lending ActC) Equal Credit Opportunity ActD) Fair Credit Billing Act
Equal Credit Opportunity ActExplanation: The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against consumers based on their credit history, including charging higher interest rates.
Lisa received a credit card statement that included unauthorized charges. Which of the following laws provides Lisa with a process to dispute the charges?A) Truth in Lending ActB) Fair Credit Reporting ActC) Fair Credit Billing ActD) Electronic Funds Transfer Act
Fair Credit Billing ActExplanation: The Fair Credit Billing Act (FCBA) provides consumers with a process to dispute billing errors, including unauthorized charges on their credit card statements.
Tom received an email from a company that offered him a loan with no credit check required. Which of the following laws prohibits companies from making false or misleading claims about their products or services?A) Fair Debt Collection Practices ActB) Fair Credit Reporting ActC) Truth in Advertising ActD) Consumer Financial Protection Act
Truth in Advertising ActExplanation: The Truth in Advertising Act prohibits companies from making false or misleading claims about their products or services, including claiming that no credit check is required for a loan.
