Dave Ramsey - Unit 5

Question 1

_ You need to take out a credit card or car loan to “Build up your ______ ______.”

Answer 1

Myth; credit score

Question 2

_ The FICO score is an “I love ______” score and is not a measure of ______ financially

Answer 2

Truth; debt; winning

Question 3

Account information is removed from your credit report ____ years after the last activity on that account, except for a chapter 7 bankruptcy, which stays on for ____ years.

Answer 3

7; 10

Question 4

Beware of credit clean-up scams. The only information that may be legally removed from a credit report is ______ information.

Answer 4

inaccurate

Question 5

The National Association of State Public Interest Research Groups (U.S. PIRG) did a survey of 200 adults in 30 states who checked their credit report for accuracy:
* _____ of those credit reports contained mistakes of some kind and _____ of them contained errors serious enough to result in the denial of credit.

Answer 5

79%; 25%

Question 6

The National Association of State Public Interest Research Groups (U.S. PIRG) did a survey of 200 adults in 30 states who checked their credit report for accuracy:
* _____ of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open.

Answer 6

30%

Question 7

The National Association of State Public Interest Research Groups (U.S. PIRG) did a survey of 200 adults in 30 states who checked their credit report for accuracy:
* _____ listed the same mortgage or loan twice

Answer 7

22%

Question 8

Check your credit report _____ which you can now do for free

Answer 8

annually

Question 9

Identity Theft:

1.) Place a _____ _____ alert on your credit bureau report (stays on for 90 days without a police report).

Answer 9

fraud victim

Question 10

Identity Theft:

2.) Get a _____ _____.

Answer 10

police report

Question 11

Identity Theft:

3.) Remember, this is _____. You owe _____ and should pay _____.

Answer 11

theft; nothing; nothing

Question 12

Identity Theft:

4.) Contact the fraud victim _____ of each creditor and furnish _____.

Answer 12

division; documentation

Question 13

Identity Theft:

5.) Be _____ – this will take some time. You now have a new _____.

Answer 13

persistent; hobby

Question 14

An updated version of the 187 Federal Fair Credit Reporting Act requires a credit bureau to _____ all inaccuracies within 30 days of notification of such inaccuracies.

Answer 14

remove

Question 15

You should also request that “inquiries” be removed. All of these letters should be sent _____ mail with return receipt requested to prove when they recieve the letter. If the credit bureau does not prove the accuracy of the account within 30 days, you should request they remove the _____ account from your file.

Answer 15

certified; entire

Question 16

Lodge any _____ with the Federal Trade Commission and your state’s Consumer Affairs Division.

Answer 16

complaints

Question 17

The best way to pay debts is with a _____.

Answer 17

plan

Question 18

A collector’s job is not to help your overall situation. His only job is to get your _____.

Answer 18

money

Question 19

Collectors are trained _____ _____ or _____.

Answer 19

sales people; telemarketers

Question 20

Sales people and telemarketers are typically low-paid positions with high _____.

Answer 20

turnover

Question 21

Sales people and telemarketers are taught in their training to evoke strong _____.

Answer 21

emotion

Question 22

The way to counteract this technique is to ALWAYS pay _____ first, and then _____ set the order of payment.

Answer 22

necessities; you

Question 23

Federal Fair Debt Collection Practices Act:
The Act states that harassment is illegal, and restricts collector’s call between the hours of _____ and _____ (unless they have your permission)

Answer 23

8:00 AM; 9:00 PM

Question 24

Federal Fair Debt Collection Practices Act:
The Act also allows you to demand that a creditor cease calling you at _____. You should request this in writing by certified mail with return receipt requested.

Answer 24

work

Question 25

Federal Fair Debt Collection Practices Act:

The Act even allows you to insist that a creditor stop _____ contact except to notify you of _____ proceeding.

Answer 25

all; lawsuit

Question 26

Federal Fair Debt Collection Practices Act:
Do not use a cease-and-desist letter except in horrible situations, because all _____ stop and any hope of a positive resolution is lost.

Answer 26

negotiations

Question 27

Federal Fair Debt Collection Practices Act:
No collector or creditor may _____ a bank account or garnish (attach) _____ without proper and lengthy court action, except in the case of delinquent IRS or student loan debt. All such threats are a bluff.

Answer 27

take; wages

Question 28

Do NOT let a collector use your credit report as a _____ _____.

Answer 28

paper club

Question 29

When you are unable to pay the minimum payments use the ____ ____ ____.

Answer 29

pro rata plan

Question 30

Typically, lawsuits for under _____ are filed in General Sessions Court (or small claim court), which is a fairly informal proceeding.

Answer 30

$10,000

Question 31

Before you are sued, you will be served by the local sheriff’s department and typically given _____ days notice of the court date.

Answer 31

10

Question 32

In court, if the debt is valid, even if you fight, you will _____. From that date you will generally gave 30 days before the _____ becomes final and garnishments or attachments begin.

Answer 32

lose; judgement

Question 33

• At ANY TIME during the process, you may settle with the creditor or their attorney in writing. If you are not able to reach an agreement, you can file with the court a “_____ _____ motion,” called a “pauper’s oath” in some states.

Answer 33

slow pay