AFC Consumer Protection Laws and Identity Theft

Question 1

Under the Fair Credit Reporting Act (FCRA), how long can a Chapter 7 bankruptcy remain on a consumer's credit report?

Accepted Answer

10 years

Answer

7 years

Answer

5 years

Answer

Indefinitely

Question 2

A client is being harassed by a debt collector calling before 8 a.m. and after 9 p.m. Which federal law protects the client from this practice?

Accepted Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

Fair Credit Reporting Act (FCRA)

Answer

Truth in Lending Act (TILA)

Answer

Equal Credit Opportunity Act (ECOA)

Question 3

A client discovers fraudulent accounts on their credit report. As their AFC counselor, what is the FIRST step you would recommend?

Accepted Answer

Place a fraud alert or credit freeze with the credit bureaus

Answer

File a lawsuit against the creditor

Answer

Pay the fraudulent balances to protect credit score

Answer

Wait 7 years for the items to fall off automatically

Question 4

Under the Truth in Lending Act (TILA), what information must lenders disclose to borrowers before a loan is finalized?

Accepted Answer

Annual percentage rate (APR), finance charges, and total payment amount

Answer

The borrower's credit score and debt-to-income ratio

Answer

The lender's profit margin and overhead costs

Answer

The borrower's income and asset verification details

Question 5

A client's credit card issuer has violated their rights under the FCRA by reporting inaccurate information. What right does the client have under this law?

Accepted Answer

The right to dispute inaccurate information and have it investigated within 30 days

Answer

The right to have all negative information removed immediately

Answer

The right to sue for $10,000 in damages without proof of harm

Answer

The right to demand the creditor stop all collection activity

Question 6

Which federal law prohibits creditors from discriminating against applicants based on race, color, religion, national origin, sex, marital status, or age?

Accepted Answer

Equal Credit Opportunity Act (ECOA)

Answer

Fair Housing Act (FHA)

Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

Gramm-Leach-Bliley Act (GLBA)