Exam 6: Introduction to Consumer Credit

If you have a complaint against The First National Bank of Edmond, who should you contact?

If you have a problem with your creditor, the best solution is to:

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?

A valuable asset pledged to assure loan payments and subject to seizure upon default is called:

The borrower's attitude toward his or her credit obligations is called:

Which one of the following would not be a good use of a home equity loan?

If you cosign, the creditor can collect this debt from you without first trying to collect from the borrower.

Most of the information in your credit file may be reported for only ______ years.

Which federal consumer credit law regulates the advertising of credit terms?

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

The credit cardholders who pay off their balances in full each month are known as convenience users.

Which FICO credit score would represent the least risky borrower?

The Fair Credit Billing Act sets the procedures for promptly correcting billing errors.

If your monthly net (after-tax) income is $1,500, what should be your maximum amount spent on credit payments?

The debt payments-to-income ratio is:

You should sign your new credit cards as soon as they arrive.

The debt-to-equity ratio is calculated by dividing your monthly debt payments (not including house payments) by your net worth.

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

Which federal credit law sets the procedure for promptly correcting billing mistakes?

Consumer credit is based on trust in people's ability and willingness to pay bills when due.