Exam 31: Consumer Protection

The Equal Credit Opportunity Act makes it illegal for a lender to discriminate against a potential borrower because of race,national origin,religion,or sex,but it is permissible to treat a borrower differently if he or she is on welfare.

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?

Prime Products,Inc.was going to be able to ship the comforter Margaret ordered within three weeks instead of the seven days it had originally promised.Prime must cancel Margaret's order and notify her that it can deliver within three weeks if she wants to reorder.

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

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

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

If you lease a car rather than buy one on credit,you have no statutory consumer protection.

The Federal Trade Commission Act considers the terms "deceptive" and "unfair" to be synonymous when determining what practices should be prohibited.

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.

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

Consumers have a right to:

What are the three tests or elements used by the FTC to determine whether a particular act is an unfair trade practice?

Which of the following statements express the purpose of the Truth-in-Lending Act?

The Magnuson-Moss Warranty Act covers all consumer products regardless of their cost.

Brooke uses her credit card to purchase a lawn mower at the local "big box" hardware store,but when she tries to use the mower for the first time,she finds it is not self-propelled as advertised.Does she have any recourse?

Consumer credit reporting agencies are unregulated governmental agencies.

The issue in the Gray v.American Express Co.case involved:

Millie ordered clothes from a mail order catalog.No time was specified as to when the goods would be shipped.In such a case the FTC requires that the company must ship the goods to Millie:

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

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?