112. The Fair Credit Billing Act holds that when consumers think there is a mistake in a credit card bill they have six
months in which to notify the creditor in writing.
a. True
b. False
113. The Fair Credit Billing Act holds that when consumers think there is a mistake in a credit card bill they have sixty
days in which to notify the creditor in writing.
a. True
b. False
114. Under the Fair Credit Billing Act, if consumers notify the card company immediately of a stolen or lost credit card,
their liability for unauthorized losses is $500.
a. True
b. False
115. The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) imposed new restrictions on
credit card companies in 2010.
a. True
b. False
116. The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) states that gift cards may
not expire for at least five years.
a. True
b. False
117. The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) imposes restriction on how
often interest rates on cards may be changed.
a. True
b. False
118. The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) gave card oversight to the
Federal Reserve Board.
a. True
b. False
119. The Fair Credit Reporting Act focuses on confidentiality and accuracy in compiling and distributing consumer credit
reports.
a. True
b. False
120. Under the Fair Credit Reporting Act, a credit report may be issued for any legitimate business or personal need.
a. True
b. False
121. If a consumer complains about incorrect information in a credit report, the credit reporting agency must respond
within 30 days.
a. True
b. False
122. When a consumer is refused credit, the Fair Credit Reporting Act requires the consumer reporting agency to inform
the consumer of the rejection.
a. True
b. False
123. Consumers must hire a “credit repair” specialist to get mistakes in consumer (credit) reports corrected.
a. True
b. False
124. If a credit reporting agency is found to have violated the rights of a consumer, damages may not exceed $25,000.
a. True
b. False
125. Consumers who borrow money in the U.S. have, in general, far more rights under the law than is true in other
wealthy nations such as Germany and the U.K.
a. True
b. False
126. The Fair and Accurate Credit Transactions Act (FACT Act) requires credit reporting services to let consumers see
their credit reports annually for free.
a. True
b. False
127. The Fair and Accurate Credit Transactions Act (FACT Act) requires credit reporting services to let consumers
correct bad information in their credit reports.
a. True
b. False
128. The Fair and Accurate Credit Transactions Act (FACT Act) requires credit card receipts to show no more than
the last few numbers on a credit card.
a. True
b. False
129. The Fair and Accurate Credit Transactions Act (FACT Act) requires credit card receipts to show the expiration
date of the card.
a. True
b. False
130. Regulations under the Fair and Accurate Credit Transactions Act (FACT Act) requires consumer information to be
disposed of properly to protect privacy.
a. True
b. False
131. Regulations under the Fair and Accurate Credit Transactions Act (FACT Act) prohibits businesses from keeping
consumer information on file more than 90 days in an effort to protect privacy.
a. True
b. False
132. The FTC’s Red Flag Rule requires notices to consumers about security breach in their personal credit information.
a. True
b. False
133. The FTC’s Red Flag Rule requires notices to consumers when interest rates are about to be increased on a credit
account.
a. True
b. False
134. The Equal Credit Opportunity Act prohibits discrimination against credit applicants on the basis of sex, race, marital
status, or receipt of public benefits (welfare).
a. True
b. False
135. The Equal Credit Opportunity Act makes it illegal for a creditor to take into account the income of a person who
applies for credit.
a. True
b. False
136. The Equal Credit Opportunity Act makes it illegal for a creditor to take into account whether or not the person
applying for credit receives public benefits (welfare).
a. True
b. False
137. When a consumer is rejected for credit, the Equal Credit Opportunity Act requires the creditor to give the
consumer a list of at least three other creditors.
a. True
b. False
138. When a consumer is rejected for credit, the Equal Credit Opportunity Act requires the creditor to give the
consumer the name of the federal agency that enforces the Act and must tell the consumer their basic rights.
a. True
b. False
139. The Fair Debt Collection Practices Act prohibits debt collectors from using harassing and deceptive debt-collection
practices.
a. True
b. False
140. The Fair Debt Collection Practices Act prohibits all creditors from using a host of harassing, deceptive, and unfair
debt-collection practices.
a. True
b. False
141. The Fair Debt Collection Practices Act prohibits debt collectors from discussing a debtor’s debts with their
employer.
a. True
b. False
142. The Fair Debt Collection Practices Act prohibits a debt collector from calling a debtor at home more than three
times regarding any one debt.
a. True
b. False
143. In Heintz v. Jenkins, the Supreme Court held that some attorneys may be subject to the rules of the Fair Debt
Collection Practices Act.
a. True
b. False
144. Under the Fair Debt Collection Practices Act, debt collectors may impersonate attorneys so long as authorized to
do so by a licensed attorney.
a. True
b. False
145. Under the Fair Debt Collection Practices Act a debt collector has the right to tell a consumer that if the validity of a
debt is not disputed within 30 days, then it is presumed to be a valid debt.
a. True
b. False
146. In Chuway v. National Action Financial Services, where Chuway sued a debt collector for violating the Fair
Debt Collection Practices Act by having unclear language in a collection letter, the appeals court held that the letter
was “sufficiently clear” to an ordinary consumer, so there was no violation.
a. True
b. False
147. In Chuway v. National Action Financial Services, where Chuway sued a debt collector for violating the Fair
Debt Collection Practices Act by having unclear language in a collection letter, the appeals court held that the law
had been violated for failure to use precise language in the letter.
a. True
b. False
148. Debt collectors who violate the Fair Debt Collection Practices Act may be liable for double the actual damages plus
additional damages up to $50,000.
a. True
b. False
149. Debt collectors who violate the Fair Debt Collection Practices Act may be liable for damages specified in the
statute, but not liable for damages in tort.
a. True
b. False
150. The Electronic Fund Transfer Act, along with Regulation E, provides the consumer’s liability is $50 if the financial
institution is notified within 60 days about the loss of a consumer’s electronic fund transfer card.
a. True
b. False
151. Under the Electronic Fund Transfer Act, if your bank card is stolen you must notify the bank within two days to
limit your liability to $50 for unauthorized charges.
a. True
b. False
152. Under the Electronic Fund Transfer Act, if you fail to tell your bank that your bank card has been stolen, you may
be responsible for all losses incurred due to unauthorized use.
a. True
b. False
153. The Dodd-Frank Act created a Consumer Financial Protection Bureau that has significant power to expand
regulation over consumer credit.
a. True
b. False
154. The Dodd-Frank Act requires that credit card interest rates be no more than four percentage points greater than
the Federal Reserve Board prime rate.
a. True
b. False