Exam 25: Consumer Law

John loans George money and they sign a written agreement whereby George will repay John in monthly installments.Is this loan subject to the Truth-in-Lending Act?

The Magnuson-Moss Warranty Act only covers face-to-face sales,not catalog or Internet sales.

The Fair Debt Collection Practices Act prohibits which of the following practices?

If a consumer cancels a door-to-door sale within the required time,how many days does the seller have to return the buyer's money?

Ron's Furnace Repair advertised it would inspect any homeowner's furnace for free.Janet had Ron's come to inspect her furnace.The servicewoman dismantled the entire furnace then refused to put it back together unless Janet paid her $250.The FTC considers such a practice to be:

John purchased $600 worth of clothes from Clothing Mart. He paid for the clothes with a credit card. When he received his statement, he sent the credit card company a check for $600. The credit card company mistakenly recorded his payment as $60. When John received his next statement, he noticed the $540 error and contacted the credit card company. A few days later when he attempted to use his card to buy gasoline, he was told by the cashier that the card had been canceled and she was instructed to take his card. John was shocked, embarrassed, and angry. When he contacted the credit card company, it pointed out a provision in his initial contract for the card that stated the company could revoke his card privileges at any time with or without cause. -Consumers have a right to:

Explain the difference between a debit and a credit card and discuss the potential liability for a lost or stolen card.

Under the Fair Debt Collection Practices Act,a collection company is legally permitted to:

The Consumer Leasing Act requires a lessor to disclose in writing all EXCEPT:

Grady receives a $12,940 credit card bill in the mail from a company with which he did not open an account.He fears he is a victim of identity theft.Does he have any recourse?

Under the TILA,for subprime mortgage loans,a lender:

The maximum rate of interest for credit transactions is established by:

Marla applies for and receives a three-year loan through Sharkey Lenders for $5,000 at 27% APR.If the loan agreement violates the applicable usury statute,Marla may be able to keep:

Don received in the mail merchandise he never ordered.The package was addressed to him,and when he opened it he saw a brochure stating he could keep the products for only $19.95.If he chose not to keep the products he was instructed to mail them back within five days.Don:

The Trimbles apply to Community Savings & Loan for an installment loan of $20,000 to remodel their bathroom.Discuss the disclosures Community is required to make.

John purchased $600 worth of clothes from Clothing Mart. He paid for the clothes with a credit card. When he received his statement, he sent the credit card company a check for $600. The credit card company mistakenly recorded his payment as $60. When John received his next statement, he noticed the $540 error and contacted the credit card company. A few days later when he attempted to use his card to buy gasoline, he was told by the cashier that the card had been canceled and she was instructed to take his card. John was shocked, embarrassed, and angry. When he contacted the credit card company, it pointed out a provision in his initial contract for the card that stated the company could revoke his card privileges at any time with or without cause. -Such a provision within the credit card contract is:

"Bait and switch" is:

Richard received his credit card bill and noticed an error.He wrote to the company the next week,pointing out the error in his bill.Under the law,what is the credit card's obligation once it receives Richard's letter?

Employers must have written permission from job applicants to request a credit report.

Company policy of PushOne,Inc.is to block the company name and telephone number on potential customers' Caller ID systems so they won't know the call is from a telemarketer.This policy violates FTC rules.