Exam 33: Consumer Protection

What is not a correct statement concerning the Fair Debt Collection Practices Act?

Advertising regulations are designed to:

Predatory lending is a practice on the part of the subprime lending market whereby lenders take advantage of less sophisticated consumers or those who are desperate for funds by using the lenders' superior bargaining positions to obtain credit terms that go well beyond compensating them for their risk.

Consumer protection statutes and regulations do not protect against:

Consumer protection statutes are identical in all fifty states and the District of Columbia.

If you allow another person to use your credit card but the person uses the card for a purpose other than the one you specified:

Labels on packages are regulated to provide information about the contents and warnings about the dangers involved in the use of the product.

It is lawful to refuse to extend credit to a consumer based on the consumer's:

The FTC requires that only descriptive and non-ambiguous terms such as jumbo,giant,or full be used in product labeling.

Corrective advertising required by the FTC also is called retroactive advertising.

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.

Samuel signed a contract to purchase furniture on credit.The contract clearly set forth in bold print all charges included in the cost of the credit,including the interest rate and annual percentage rate.The seller informed Samuel that the seller regularly sold these contracts to a finance company that paid it immediate cash and then collected from the debtors.The seller further advised that the finance company did not want "the headache" of determining the validity of consumer complaints and that therefore the contract provided that the consumer waived all defenses concerning the furniture against the finance company.The contract expressly provided that the seller would remain responsible for any non-conformities in the furniture or breaches of contract on its part.The furniture was defective,but the finance company is demanding that Samuel make the payments to it required by the contract and resolve its disputes with the seller of the furniture.Samuel consults you regarding his rights.What is your response?

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.

Pursuant to the Credit Repair Organization Act of 1996,credit repair organizations must be "non-profit."

An auto dealer who does not actually know of a roll-back can use lack of knowledge as a defense against odometer fraud,regardless of the condition of the car.

Individuals can seek criminal and civil penalties against those who violate consumer protection statutes.

Anyone promoting the sale of a real estate development that is divided into fifty (50)or more parcels of less than five (5)acres each must file a development statement with the secretary of Housing and Urban Development.

When an enterprise has made false and deceptive statements in advertising,the FTC may require new advertising to correct the former statement so that consumers are aware of the truth.This corrective advertising required by the FTC is also called __________ advertising.

Pursuant to the CARD Act of 2009,all credit card companies must have bills in consumers' hands not less than __________ before the bill is due.

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