Question 1

Private remedies for violation of the Equal Credit Opportunity Act include:

Accepted Answer

A)  actual and punitive damages up to $10,000. 
B)  actual and punitive damages up to $10,000 and attorney's fees. 
C)  actual damages, punitive damages up to $10,000, and attorney's fees and legal costs. 
D)  attorney's fees and legal costs. 
E)  actual damages up to $10,000. 
A)  actual and punitive damages up to $10,000. 
B)  actual and punitive damages up to $10,000 and attorney's fees. 
C)  actual damages, punitive damages up to $10,000, and attorney's fees and legal costs. 
D)  attorney's fees and legal costs. 
E)  actual damages up to $10,000.

Question 2

Which of the following is included in the finance charge?

Accepted Answer

A)  Application fees charged to all applicants for credit. 
B)  Charges for unanticipated late payments, exceeding a credit limit, or delinquency. 
C)  Charges imposed by a financial institution for paying items that overdraw an account. 
D)  Fees charged for participation in a credit plan. 
E)  Fees for appraisals. 
A)  Application fees charged to all applicants for credit. 
B)  Charges for unanticipated late payments, exceeding a credit limit, or delinquency. 
C)  Charges imposed by a financial institution for paying items that overdraw an account. 
D)  Fees charged for participation in a credit plan. 
E)  Fees for appraisals.

Question 3

In the past, courts have mainly used:

Accepted Answer

A)  statutory law to resolve consumer disputes. 
B)  constitutional law to resolve consumer disputes. 
C)  administrative regulations to resolve consumer disputes. 
D)  principles of common law to resolve consumer disputes. 
E)  principles of procedural law to resolve consumer disputes. 
A)  statutory law to resolve consumer disputes. 
B)  constitutional law to resolve consumer disputes. 
C)  administrative regulations to resolve consumer disputes. 
D)  principles of common law to resolve consumer disputes. 
E)  principles of procedural law to resolve consumer disputes.

Question 4

What are the chief legal tools of the Bureau of Consumer Protection and how are they enforced?

Accepted Answer

The chief legal tools of the Bureau are

Question 5

The Fair Credit Reporting Act applies to anyone who prepares or uses a credit report in connection with:

Accepted Answer

A)  opening a bank account. 
B)  promoting an employee. 
C)  selling real estate. 
D)  granting a business license. 
E)  extending credit. 
A)  opening a bank account. 
B)  promoting an employee. 
C)  selling real estate. 
D)  granting a business license. 
E)  extending credit.

Question 6

The Federal Truth-in-Lending Act:

Accepted Answer

A)  sets minimum and maximum interest rates for various types of loans. 
B)  mandates that a financing statement be prepared when credit is extended by a business to a consumer. 
C)  applies to personal property loans such as car or education loans, but does not apply to real property loans such as a purchase of a house. 
D)  regulates the advertising used by lenders to attract loan customers. 
E)  establishes dischargeable debts in cases of bankruptcy. 
A)  sets minimum and maximum interest rates for various types of loans. 
B)  mandates that a financing statement be prepared when credit is extended by a business to a consumer. 
C)  applies to personal property loans such as car or education loans, but does not apply to real property loans such as a purchase of a house. 
D)  regulates the advertising used by lenders to attract loan customers. 
E)  establishes dischargeable debts in cases of bankruptcy.

Question 7

Violations of the FDCPA entitle the debtor to sue the debt collector for:

Accepted Answer

A)  contemptuous damages, plus court costs and attorney's fees. 
B)  punitive damages, plus court costs and attorney's fees. 
C)  actual damages, plus court costs and attorney's fees. 
D)  speculative damages, plus court costs and attorney's fees. 
E)  nominal damages, plus court costs and attorney's fees. 
A)  contemptuous damages, plus court costs and attorney's fees. 
B)  punitive damages, plus court costs and attorney's fees. 
C)  actual damages, plus court costs and attorney's fees. 
D)  speculative damages, plus court costs and attorney's fees. 
E)  nominal damages, plus court costs and attorney's fees.

Question 8

The Consumer Financial Protection Bureau (CFPB) is run by a director appointed by the president with the advice and consent of the Senate.

Accepted Answer

A) True 
 B)False

Question 9

There are nine restrictions on loan collector's methods that are declared illegal under the Fair Debt Collection Practices Act. Name them.

Accepted Answer

There are nine restrictions on loan coll

Question 10

The Truth-in-Lending Act gives consumers the right to rescind certain transactions for a period of:

Accepted Answer

A)  seven business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever comes first. 
B)  three business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever comes first. 
C)  three business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever is later. 
D)  seven business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever is later. 
E)  five business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever is later. 
A)  seven business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever comes first. 
B)  three business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever comes first. 
C)  three business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever is later. 
D)  seven business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever is later. 
E)  five business days from the date of the transaction or from the date that notice of the right to rescind is given, whichever is later.

Question 11

The national "Do Not Call" list was created by a(n):

Accepted Answer

A)  Congressional statute. 
B)  FTC trade regulation. 
C)  executive order. 
D)  uniform statute established on the state's level. 
E)  procedural law. 
A)  Congressional statute. 
B)  FTC trade regulation. 
C)  executive order. 
D)  uniform statute established on the state's level. 
E)  procedural law.

Question 12

The major duty of the Magnuson-Moss Warranty Act is to require the FTC to issue rules regarding consumer product warranties.

Accepted Answer

A) True 
 B)False

Question 13

The FTC commissioners are appointed by the president.

Accepted Answer

A) True 
 B)False

Question 14

What are the situations in which fines related to trade practice violations under the FTC Acts are assessed by the federal court?

Accepted Answer

Fines related to trade practice violatio

Question 15

What five factors does the FTC take into account when looking at an advertisement to determine whether it is deceptive?

Accepted Answer

There are five factors that the FTC take

Question 16

The _____ places constraints on how certain kinds of information collected by the federal government can be used and limits those to whom the information may be released.

Accepted Answer

A)  Fair Credit Reporting Act 
B)  Fair Debt Collection Practices Act 
C)  Right to Financial Privacy Act 
D)  Electronic Communications Privacy Act 
E)  Privacy Act 
A)  Fair Credit Reporting Act 
B)  Fair Debt Collection Practices Act 
C)  Right to Financial Privacy Act 
D)  Electronic Communications Privacy Act 
E)  Privacy Act

Question 17

Which of the following is required in order to file a Chapter 13 bankruptcy?

Accepted Answer

A)  Unsecured debts under $360,475 and/or secured debts under $1,081,400. 
B)  Unsecured debts over $450,000 and/or secured debts over $2,050,000. 
C)  Debts must simply be in excess of the debtor's assets, regardless of the amount. 
D)  Assets must simply be in excess of the debtor's debts, regardless of the amount. 
E)  More than 10 years must have lapsed after the date fixed for the repayment of the debts. 
A)  Unsecured debts under $360,475 and/or secured debts under $1,081,400. 
B)  Unsecured debts over $450,000 and/or secured debts over $2,050,000. 
C)  Debts must simply be in excess of the debtor's assets, regardless of the amount. 
D)  Assets must simply be in excess of the debtor's debts, regardless of the amount. 
E)  More than 10 years must have lapsed after the date fixed for the repayment of the debts.

Question 18

Congress has specified that the Fair Debt Collection Practices Act preempts any state laws regulating debt collection in an effort to standardize enforcement in the industry.

Accepted Answer

A) True 
 B)False

Question 19

When the Bureau of Consumer Protection prosecutes a violator for violation of the FTC, the violator is called a(n):

Accepted Answer

A)  respondent. 
B)  claimant. 
C)  appellant. 
D)  plaintiff. 
E)  pursuer. 
A)  respondent. 
B)  claimant. 
C)  appellant. 
D)  plaintiff. 
E)  pursuer.

Question 20

In a bankruptcy proceeding against an individual, the individual's property is liquidated under Chapter 7 of the bankruptcy law.

Accepted Answer

A) True 
 B)False

Exam 18: Privacy and Consumer Protection

Private remedies for violation of the Equal Credit Opportunity Act include:

Which of the following is included in the finance charge?

In the past, courts have mainly used:

What are the chief legal tools of the Bureau of Consumer Protection and how are they enforced?

The Fair Credit Reporting Act applies to anyone who prepares or uses a credit report in connection with:

The Federal Truth-in-Lending Act:

Violations of the FDCPA entitle the debtor to sue the debt collector for:

The Consumer Financial Protection Bureau (CFPB) is run by a director appointed by the president with the advice and consent of the Senate.

There are nine restrictions on loan collector's methods that are declared illegal under the Fair Debt Collection Practices Act. Name them.

The Truth-in-Lending Act gives consumers the right to rescind certain transactions for a period of:

The national "Do Not Call" list was created by a(n):

The major duty of the Magnuson-Moss Warranty Act is to require the FTC to issue rules regarding consumer product warranties.

The FTC commissioners are appointed by the president.

What are the situations in which fines related to trade practice violations under the FTC Acts are assessed by the federal court?

What five factors does the FTC take into account when looking at an advertisement to determine whether it is deceptive?

The _____ places constraints on how certain kinds of information collected by the federal government can be used and limits those to whom the information may be released.

Which of the following is required in order to file a Chapter 13 bankruptcy?

Congress has specified that the Fair Debt Collection Practices Act preempts any state laws regulating debt collection in an effort to standardize enforcement in the industry.

When the Bureau of Consumer Protection prosecutes a violator for violation of the FTC, the violator is called a(n):

In a bankruptcy proceeding against an individual, the individual's property is liquidated under Chapter 7 of the bankruptcy law.

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