CCM Credit Law and Regulations

Question 1

Which law regulates fair and accurate credit reporting in the U.S.?

Accepted Answer

Fair Credit Reporting Act

Answer

Truth in Lending Act

Answer

Fair Debt Collection Practices Act

Answer

Equal Credit Opportunity Act

Question 2

What is the purpose of the Equal Credit Opportunity Act (ECOA)?

Accepted Answer

Prevent discrimination in lending

Answer

Regulate interest rates

Answer

Set late fee limits

Answer

Determine credit scores

Question 3

Which act ensures that consumers are informed of the true cost of credit?

Accepted Answer

Truth in Lending Act

Answer

Fair Credit Billing Act

Answer

Consumer Credit Protection Act

Answer

Fair Debt Collection Practices Act

Question 4

What does the Fair Debt Collection Practices Act (FDCPA) regulate?

Accepted Answer

Third-party debt collection practices

Answer

Business loan terms

Answer

Bankruptcy filings

Answer

Loan guarantees

Question 5

Why must credit managers stay informed about regulatory changes?

Accepted Answer

To avoid regulatory penalties

Answer

To improve product design

Answer

To enhance advertising campaigns

Answer

To reduce employee turnover

Question 6

Which law allows consumers to dispute inaccurate items on credit reports?

Accepted Answer

FCRA

Answer

FDCPA

Answer

ECOA

Answer

TILA