Ch 6

Question 1

You need to take out a credit card or car loan to ______

Answer 1

Build up your credit score

Question 2

The ____ score is an…..______ debt

Answer 2

Fico, I love you

Question 3

Account information is removed from your credit report __ years after the last activity on the account except for a chapter 7 bankruptcy, which stays for how many years?

Answer 3

7, 10

Question 4

The only information that may be legally removed from a credit report is ___ information

Answer 4

Inaccurate

Question 5

___% of those credit reports contained mistake.

Answer 5

79

Question 6

___% of them contained errors serious enough to result i the denial of credit

Answer 6

25

Question 7

__% of the credit reports contained credit accounts that’s been closed by the consumer

Answer 7

30

Question 8

__% listed the same mortgage or loan twice

Answer 8

22

Question 9

Three credit bureaus are..

Answer 9

Experian, transunion, and equifax

Question 10

Identity theft is the fastest growing ____ ____ crime in North America today

Answer 10

White collar

Question 11

Identity theft 1.)

Place a ___ ___ alert on your credit bureau report

Answer 11

Fraud victim

Question 12

Identity theft 2.)

Get a _____ ____.

Answer 12

Police report

Question 13

Identity theft 3.)

Remember, this is ____. You owe ____ and should pay _____.

Answer 13

Theft, nothing, nothing

Question 14

Identity theft 4.) contact the _____ ____ division of each creditor and furnish ____

Answer 14

Fraud victim, documentation

Question 15

Be ____, this will take some time. You now have a new ___.

Answer 15

Persistent, hobby

Question 16

To clean your credit report for inaccurate information, take the following steps:
Number 1

Answer 16

1. Write a separate letter for each inaccurancy.

Question 17

To clean your credit report for inaccurate information, take the following steps:
Number 2

Answer 17

Staple a copy of your credit report to each letter

Question 18

To clean your credit report for inaccurate information, take the following steps:
Number 3

Answer 18

Circle the account number

Question 19

The best way to pay debt is with a ____.

Answer 19

Plan

Question 20

A collectors job is not to help your overall situation. His only job is to get your ____.

Answer 20

Money

Question 21

Collectors are trained ______ _____ or _____.

Answer 21

Sales people, telemarketers

Question 22

They are typically low paid positions with high ____.

Answer 22

Turnover

Question 23

They are taught in their training to evoke strong _____.

Answer 23

Emotion

Question 24

ALWAYS pay ______ first, and then you set the order of payment.

Answer 24

Necessities

Question 25

Always set your priorities by the four walls:

Answer 25

1. Food 2. Shelter 3. Clothing 4. Transportation

Question 26

The act states that ____ is illegal and restricts a collectors call between __ and ___

Answer 26

Harassment, 8 am & 9 pm

Question 27

The federal fair debt collection practices act allows you to demand that a creditor cease calling you at ___. You should request this in writing by ___ ___ with return receipt requested.

Answer 27

Work, certified mail

Question 28

The act even allows you to insist that a creditor stops ___ ___ except to notify you of ____ proceedings. That's called a ___ and ____ letter.

Answer 28

All contact, lawsuit, cease-and-desist

Question 29

Don't use a cease and desist letter except in horrible situations, because all ______ ____ and any hope of a positive resolution is lost.

Answer 29

Negotiations stop

Question 30

No collector or creditor may ___ _ ___ _____ or _____ wages without proper and lengthy court action

Answer 30

Take a bank account or garnish

Question 31

Your plan should include as much ______ ________ of debt as possible, but ___ must set your _____ of repayment.

Answer 31

Prompt repayment, YOU, priorities

Question 32

DO NOT let a collector use your ___ ____ as a paper club

Answer 32

Credit report

Question 33

When your unable to pay the minimum payments use the ___ ____ plan

Answer 33

Pro ratio

Question 34

Eventually if your making no payments and have cut no deals , what will happen?

Answer 34

You will get sued

Question 35

Lawsuits for under $10,000 are filed in...

Answer 35

General sessions court

Question 36

Before your sued you will be given ___ days notice of court date

Answer 36

10

Question 37

If the debt is valid and even if you fight, you will still

Answer 37

Lose

Question 38

If you can't reach an agreement, you can file with the court a "_____ ____" motion called a paupers oath

Answer 38

Slow pay

Question 39

Three ideas to keep in mind:

Answer 39

- of you're going to settle, get it in writing - never give electronic access to your checking account - never give post-dated checks

Question 40

Gives creditors a fair share

Answer 40

Pro rata

Question 41

"I love debt" score

Answer 41

Fico score

Question 42

Using another persons information to obtain goods or services

Answer 42

Identity theft

Question 43

TransUnion

Answer 43

Credit bureau

Question 44

Court order allowing a lender to take money directly from the debtors paycheck

Answer 44

Garnishment

Question 45

Trained salespeople or telemarketers

Answer 45

Collectors

Question 46

Food, shelter, transportation and clothing

Answer 46

Four wall

Question 47

You should always pay the collectors first | T or F

Answer 47

F, always pay for necessities first

Question 48

The best way to deal with debt is with a plan | T or F

Answer 48

T

Question 49

The federal fair debt collection practices act allows creditors to call between 7 am and 10 pm T or F

Answer 49

F, between 8 am and 9 pm

Question 50

If you are a victim of identity theft, you are only responsible for the first $250 of debt T or F

Answer 50

F, None of the debt

Question 51

You should check your credit report every year | T or F

Answer 51

T

Question 52

``` Passed in 1977 to protect you from unfair collectors: A. FDIC B. FHA C. FFDCPA D. FFCRW ```

Answer 52

C. FFDCPA

Question 53

``` Which of the following is one of the four walls: A. Cable B. mortgage payment C. Cell phone bill D. Designer jeans ```

Answer 53

B. mortgage payment

Question 54

``` It is a good idea to check your credit report: A. Every 6 months B. every 3 years C. Every year D. Every 5 years ```

Answer 54

C. Every year

Question 55

``` Which of the following tactics are collectors likely to use? A. Lying B. harassment C. Being friendly D. All the above ```

Answer 55

D. All the above

Question 56

``` Which of the following is not a way to build your FICO score? A. Pay cash for all purchases B. get a personal loan from the bank C. Sign up and use credit cards D. All the above ```

Answer 56

A. Pay cash for all purchases

Question 57

``` Which piece of information, if stolen, is not likely to lead to identity theft? A. Drivers license B. phone number C. Credit card number D. Social security number ```

Answer 57

B. phone number

Question 58

The pro rata payment includes which of the following elements: A. Repayment of debt as soon as possible B. using the four walls to set priorities C. Giving a percentage of debt to each creditor D. All the above

Answer 58

D. All the above

Question 59

``` The fastest growing group of people filing for bankruptcy are: A. Under 25 B. 25-30 C. 30-45 D. Senior citizens ```

Answer 59

A. Under 25

Question 60

Whats the best way to deal with collectors?

Answer 60

Send a letter so they stop or pay them what you owe

Question 61

List some precautions to take to help safeguard against identity theft

Answer 61

Don't give out SS #, shred information, and cancel credit card if stolen

Question 62

Describe some common tactics used by collectors. Why do they use these?

Answer 62

Emotion, fear, anger

Question 63

Refute the myth "I need to build my credit score"

Answer 63

If you buy things with cash you only need credit score for a loan