Consumer Credit Protection Laws

Question 1

What is the purpose of the Consumer Credit Protection Act?

Answer 1

To protect consumers in their dealings with lenders and creditors

The act aims to promote informed use of credit by requiring disclosures about its terms and costs.

Question 2

What does the Equal Credit Opportunity Act ensure?

Answer 2

Fair opportunity to obtain credit regardless of personal characteristics

This includes protections against discrimination based on race, color, religion, national origin, sex, marital status, or age.

Question 3

What is the main focus of the Fair Credit Reporting Act?

Answer 3

To regulate the collection, dissemination, and use of consumer credit information

It aims to ensure accuracy and privacy of information in consumer credit reports.

Question 4

What does the Fair Credit Billing Act require?

Answer 4

Consumers have the right to dispute billing errors and have them corrected

This act provides guidelines for resolving disputes related to credit card billing.

Question 5

What protections does the Fair Debt Collection Practices Act provide?

Answer 5

Protects consumers from abusive practices by debt collectors

It prohibits harassment, false statements, and unfair practices when collecting debts.

Question 6

What is one right consumers have under consumer credit laws?

Answer 6

Right to know costs and terms of credit

This ensures transparency in credit agreements.

Question 7

Fill in the blank: Consumers have the right to know what’s in their _______.

Answer 7

credit file

This right allows consumers to review their credit history for accuracy.

Question 8

True or False: Consumers have the right to have billing mistakes resolved.

Answer 8

True

This right is protected under the Fair Credit Billing Act.

Question 9

What does the right to be protected from collection agencies entail?

Answer 9

Consumers are safeguarded from abusive debt collection practices

This is enforced through the Fair Debt Collection Practices Act.