If a debtor defaults on the minimum payment of a credit contract,all states would allow the creditor to:
A) impose a late charge.
B) garnish wages if there is a court proceeding to enforce the collection of a judgment.
C) Both of these.
D) None of these.

Question

Quizplus · Accepted Answer

All states allow a creditor to impose a late charge if the debtor defaults on the minimum payment of a credit contract. Some states allow creditors to garnish wages without a court proceeding, while others require a court judgment before wage garnishment can occur. Therefore, both options A and B are possible depending on the state laws.

If a Debtor Defaults on the Minimum Payment of a Credit