Exam 6: Introduction to Consumer Credit

Michael Flowers believes that his credit card company has made an error in its monthly statement to him.Which consumer protection law specifies procedures he can use to dispute this monthly statement?

When you complain about your billing error,the creditor must acknowledge your letter within ________ days.

Mike Cook has been receiving calls at work every two hours from a collection company that is trying to collect a past due loan from him.He believes this is harassment and that the collections company is not allowed to do this.Which consumer protection law provides protection from this type of harassment?

When you cosign a loan,you are being asked to guarantee this debt.

Describe the scam referred to as "Phishing."

With closed-end credit,loans are made on a continuous basis and you are billed periodically for at least a partial payment.

Gordon Carey uses his Visa card to purchase a new digital camera and lens.What type of credit did Gordon use?

Which of the following are most vulnerable to misusing credit?

Karen Price has determined that her net worth is $24,000,excluding her home.She owes $90,000 on her mortgage and $12,000 on a car loan.What is Karen's debt-to-equity ratio?

Lester McCann is thinking about getting a loan for a new car.He knows that when he goes shopping for a loan that all of the banks must report the annual percentage rate as well as all other terms and conditions of the loan.This will allow him to easily compare loans from different banks.Which consumer protection law requires full disclosure on all loans?

Your friends and neighbors can get credit information about you.

Debit cards are often called bank cards,ATM cards,cash cards,and check cards.

What can be included in your credit bureau file?

Which federal consumer credit law requires issuers to display on monthly statements how long it would take to pay off the existing balance and the total interest cost if the consumer paid only the minimum due?

If you cosign a loan and the debt is not paid off,then this fact does not become a part of your credit record.

Which one of the following would not be considered closed-end credit?

All economists do not recognize consumer credit as a major force in the American economy.

When did installment credit explode on the American scene?

Consumer credit refers to the use of credit for personal needs (except a home mortgage)by individuals and families.

Which federal consumer credit law requires creditors to inform applicants of acceptance or rejection of their credit application within 30 days of receiving a completed application?