Fair Credit Laws & Service Fees

Question 1

What does the Fair Credit Reporting Act? (FCRA) state?

Answer 1

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.

Question 2

What does the Fair & Accurate Credit Transactions Act (FACTA) state?

Answer 2

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.

Question 3

What does the Fair Credit Billing Act (FCBA) state?

Answer 3

1: You can dispute billing errors associated with your credit card account.
2: You must be billed in a timely manner.

Question 4

What are account maintenance/service fees?

Answer 4

Fee charged by a financial institution for account maintenance.

Question 5

True or False: Account Maintenance fees can be waived under certain circumstances

Answer 5

True

Question 6

What is a Wire Transfer Fee?

Answer 6

A fee charged when a client sends a payment to another account electronically through EFT.

Question 7

What is a Check Purchasing Fee?

Answer 7

Fee charged when a client is purchasing checks.

Question 8

What is a money order and cashier’s check fee?

Answer 8

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.

Question 9

What is an Overdraft Fee?

Answer 9

Fee charged when an account does not have enough money to cover a purchase and the financial institution loans money to complete the payment.

Question 10

What is Overdraft Protection Transfer Fee?

Answer 10

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.

Question 11

What is a Stop Payment Fee?

Answer 11

A fee charged to stop payment on a check before the check is cashed.

Question 12

What is a Non-Sufficient Funds Fee?

Answer 12

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.

Question 13

What is an ATM Transaction Limit Fee?

Answer 13

A fee charged if a consumer exceeds an allotted number of ATM transactions

Question 14

What is a Liquid Account?

Answer 14

An account from which money can be retrieved quickly without taxes or penalties

Question 15

True or False: A High Interest Savings account is a good choice for a large purchase savings account.

Answer 15

True

Question 16

What is Earned Income Tax Credit?

Answer 16

Low-to-Moderate Income individuals and families with earned income may be eligible for this tax credit.

Question 17

What is Educational Tax Credit?

Answer 17

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.

Question 18

What is Child and Dependent Care Tax Credit?

Answer 18

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.