FiCEP Consumer Protection Laws 2

Question 1

Under the Fair Debt Collection Practices Act, which action by a debt collector is prohibited?

Accepted Answer

Contacting a debtor at their workplace after being told not to

Answer

The FDCPA prohibits debt collectors from contacting debtors at their workplace if the collector knows the employer disapproves.

Question 2

What does the Truth in Lending Act primarily require lenders to disclose?

Accepted Answer

The annual percentage rate and total cost of credit

Answer

TILA requires lenders to clearly disclose the APR, finance charges, and total cost of credit.

Question 3

How long does a consumer have to dispute a credit report error under the Fair Credit Reporting Act?

Accepted Answer

There is no time limit for filing disputes

Answer

The FCRA does not impose a deadline on consumers for disputing inaccurate information on their credit reports.

Question 4

Which federal law gives consumers the right to one free credit report annually from each major bureau?

Accepted Answer

Fair and Accurate Credit Transactions Act

Answer

FACTA amended the FCRA to give consumers the right to one free credit report per year from each of the three major bureaus.

Question 5

Under the Equal Credit Opportunity Act, which factor can a lender NOT use to deny credit?

Accepted Answer

Applicant's marital status

Answer

ECOA prohibits discrimination based on marital status, along with race, color, religion, national origin, sex, and age.

FiCEP - Financial Counseling Certification Program Practice Test