Exam 32: Consumer Protection

When improper collection methods are used, it is no defense to the creditor that the improper acts were performed by an agent, an employee, or any other person acting on behalf of the creditor.

Odometer fraud allows the purchaser to recover:

Sue Thompson received a home "cold-canvas" sales call at her home from a representative of the Enlightened Encyclopedia Company. The salesperson, after a rather aggressive presentation, convinced Sue to order a $1,200 Deluxe Encyclopedia set for her two children. Sue was impressed with the quality of the books, but shortly after signing the contract, she realized that she could not really afford to make the required monthly payments. What rights, if any, does Sue have in this situation?

Consumer protection law often requires those dealing with consumers to make certain mandated disclosures.

Advertising regulations are designed to:

Consumer title loans, made in exchange for title to a car if the borrower defaults, are also called predatory loans and are illegal per se.

A sale of goods or services for $25 or more made to a buyer at home may be set aside without cause within five (5) business days.

The Fair Credit Reporting Act applies to:

A sale of goods or services for $25 or more made to a buyer at home may be set aside within __________ days.

The types of provisions that make contracts unconscionable include clauses that award excessive damages or the application of credit payments across purchases over time so that the consumer is never able to pay off any goods.

Under the Equal Credit Opportunity Act, it is unlawful to discriminate against an applicant because all or part of the applicant's income is obtained from a public assistance program.

Consumers must re-register every three years in order to stay on the National Do Not Call Registry.

Compensatory damages: