Question 1

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(n) __________ statement with the secretary of Housing and Urban Development.

Accepted Answer

The statement that must be filed is a development statement. The other choices are not applicable to the situation described.

Question 2

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

Accepted Answer

It is lawful to refuse to extend credit to a consumer based on their credit history, as this is a valid factor in determining creditworthiness. However, refusing to extend credit based on factors such as race, marital status, and age are discriminatory and unlawful under the Equal Credit Opportunity Act.

Question 3

Peter applied for a loan at three banks. Peter's application was denied at the first two banks but finally was approved by the third institution. Peter believes that the first two banks denied his application because of his minority status. No explanation ever was provided by the banks denying Peter's request for funds. After obtaining the loan, Peter soon found himself unable to make the prescribed payments. Peter went into default, causing the bank to turn his case over to a collection agency. The collection agency called him "night and day" and were very abusive in their collection practices. Peter became quite distraught and unable to function at his job. As a result, Peter was soon fired. Peter asks for your advice regarding his legal rights. What is your response?

Accepted Answer

The answer of Peter applied for a loan at three...

Question 4

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.

Accepted Answer

The CARD Act of 2009 requires credit card companies to provide bills to consumers at least 21 days before the due date in order to give consumers ample time to review and pay the bill before any fees or penalties are assessed.

Question 5

Sue Thompson received a home "cold-canvas" sales call 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?

Accepted Answer

The answer of Sue Thompson received a home "cold-canvas" sales...

Question 6

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

Accepted Answer

The answer of What is not a correct statement concerning...

Question 7

An unsolicited distribution of credit cards to persons who have not applied for them is:

Accepted Answer

The answer of An unsolicited distribution of credit cards to...

Question 8

The Fair Credit Reporting Act applies to:

Accepted Answer

The answer of The Fair Credit Reporting Act applies to:
...

Question 9

The owner of a lost credit card is:

Accepted Answer

According to the Fair Credit Billing Act, the cardholder is not liable for more than $50 for unauthorized use of their lost credit card if they report the loss to the issuer before any unauthorized charges are made. This assumes that the card was not lost through negligence, in which case the cardholder could be held liable for all purchases made by the finder of the card. However, if the card was lost despite the exercise of reasonable care by the cardholder, they would not be liable for any purchases made by the finder. Option C is not accurate, as the liability for purchases made on a credit card that was not requested by the cardholder would depend on the circumstances surrounding the card's issuance.

Question 10

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?

Accepted Answer

The answer of Samuel signed a contract to purchase furniture...

Question 11

The __________ lending market makes loans to consumers who have bankruptcies, no credit history, low-to-moderate incomes, or a poor credit history.

Accepted Answer

The term "subprime" is commonly used to refer to the lending market that provides loans to consumers with poor credit history or low-to-moderate incomes. The other options (subterranean, suboptimal, optimus prime) are not used to describe this type of lending market.

Question 12

A finance company may reject an applicant for a loan on the grounds that the applicant is:

Accepted Answer

It is illegal for a finance company to discriminate against an applicant based on their marital status or age. Therefore, options A and B are incorrect. Option C is also irrelevant to the loan application process. The only reason a finance company may reject an applicant is if they do not meet the necessary financial criteria, such as having a poor credit score or not having enough income.

Quiz 33: Consumer Protection