PCS Consumer Rights & Protection Laws 3

Question 1

Under Regulation E, if a consumer reports an unauthorized ATM transaction within 2 business days of learning about it, the consumer's maximum liability is:

Accepted Answer

$50

Answer

Under Regulation E, reporting within 2 business days limits consumer liability to $50 for unauthorized electronic fund transfers.

Question 2

Which of the following debts is NOT covered under the FDCPA?

Accepted Answer

Business debts

Answer

The FDCPA covers personal, family, and household debts — it does not apply to business-purpose debts.

Question 3

The Truth in Lending Act (TILA) requires creditors to disclose the Annual Percentage Rate (APR) primarily to enable consumers to:

Accepted Answer

Compare the true cost of credit across different lenders

Answer

TILA's APR disclosure allows consumers to compare the actual cost of credit on a standardized basis.

Question 4

Under the FDCPA, a collector may contact a third party (other than the consumer's spouse or attorney) for what purpose?

Accepted Answer

To locate the consumer's address or telephone number

Answer

Third-party contacts are permitted only to acquire location information such as the consumer's address, telephone number, or place of employment.

Question 5

Which consumer protection law specifically restricts how debt collectors may use post-dated checks from consumers?

Accepted Answer

FDCPA

Answer

FDCPA §808(f) prohibits collectors from depositing a post-dated check before the date on the check and requires advance notice before depositing it.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Consumer Rights & Protection Laws 3