Fair Credit Laws & Service Fees Flashcards
What does the Fair Credit Reporting Act? (FCRA) state?
1: You have the right to know what is in your file.
2: You have the right to dispute incomplete/inaccurate information.
3: Access to your file is limited.
4: You may seek damages from violators.
5: Additional state rights depending on location.
What does the Fair & Accurate Credit Transactions Act (FACTA) state?
1: You have the right to a free annual credit report.
2: You have the right to place a fraud alert on your credit file.
3: Credit Card #s must be truncated so the full # is not visible on receipts.
What does the Fair Credit Billing Act (FCBA) state?
1: You can dispute billing errors associated with your credit card account.
2: You must be billed in a timely manner.
What are account maintenance/service fees?
Fee charged by a financial institution for account maintenance.
True or False: Account Maintenance fees can be waived under certain circumstances
True
What is a Wire Transfer Fee?
A fee charged when a client sends a payment to another account electronically through EFT.
What is a Check Purchasing Fee?
Fee charged when a client is purchasing checks.
What is a money order and cashier’s check fee?
Fee charged when a client obtains a money order/cashier’s check. It can be a flat fee or a percentage of the payment amount.
What is an Overdraft Fee?
Fee charged when an account does not have enough money to cover a purchase and the financial institution loans money to complete the payment.
What is Overdraft Protection Transfer Fee?
A fee charged when an account with overdraft protection does not have enough money to cover a purchase and funds are transferred from another linked account to cover it.
What is a Stop Payment Fee?
A fee charged to stop payment on a check before the check is cashed.
What is a Non-Sufficient Funds Fee?
AKA an NSF fee, also referred to as a returned item fee. It’s charged if there is not enough money in an account to cover a check payment/other purchase.
What is an ATM Transaction Limit Fee?
A fee charged if a consumer exceeds an allotted number of ATM transactions
What is a Liquid Account?
An account from which money can be retrieved quickly without taxes or penalties
True or False: A High Interest Savings account is a good choice for a large purchase savings account.
True
What is Earned Income Tax Credit?
Low-to-Moderate Income individuals and families with earned income may be eligible for this tax credit.
What is Educational Tax Credit?
Clients who are in a post secondary educational program, or who are supporting children in a post-secondary program, may qualify for an educational credit.
What is Child and Dependent Care Tax Credit?
Those who are working, or are actively looking for work, may be eligible for this credit if they are paying a service to take care of someone.
