Exam 41: Consumer Protection

The federal Truth-in-Lending law:

The Food and Drug Administration:

The Food and Drug Administration is the oldest federal consumer protection agency.

_{44. The mandates clear disclosure of relevant credit information in consumer credit transactions. It requires} Conspicuous disclosure of finance charges and interest rates calculated in a uniform manner.

Betty likes to shop using her credit cards. a. What provisions of the Truth-in-Lending Act apply to the use of credit cards? _{If Betty's account at Trevor's Department Store suddenly shows a $200 charge that she did not} b. make and she notifies Trevor's in writing of the error, what must Trevor's do under the Fair _{Credit Billing Act?}

The FTC remedy of "affirmative disclosure" would require:

The Troubled Asset Relief Program enacted in 2008 was designed to strengthen the U.S. financial sector by governmental purchase of assets and equity from financial institutions.

A cease and desist order, issued by the FTC, directs a party to stop a certain practice or face punishment, such as a fine.

Under the Magnuson-Moss Warranty Act, if a store wishes to market a mini-camera for a retail cost of $5, it must give a written warranty.

What reported warranty problems caused Congress to enact the Magnuson-Moss Warranty Act?

The Magnuson-Moss Warranty Act provides that:

Under state law in many states and under the FTC rules and the federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled:

The FTC Act contains very specific definitions of the terms "unfair" and "deceptive."

Clark goes to the First Bank to obtain a consumer loan. The bank requests that the Rich Credit Reporting Agency furnish a credit report, which they do. Based upon the report, which says that Clark has been convicted of theft and credit card fraud, the bank denies Clark's application. Is Clark entitled to know what was in the report? If Clark thinks the information in the report is inaccurate, what can he do?

The Truth-in-Lending Act would not require disclosure of the amount that would be due if the borrower had paid cash instead.

The Truth-in-Lending Act establishes maximum amounts of interest that can be charged for credit cards.

Lemon laws are generally understood to be laws that:

Under the Consumer Credit Protection Act, a consumer has three days to withdraw from any credit obligation secured by a mortgage on his home, even if the contract was not the result of a door-to-door sale.

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 forbids credit card issuers from raising interest rates or any fees during the first year a credit card account is open, and the Act states that gift cards or certificates may not expire sooner than five years after issuance.