Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This violates
A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.

Question

Quizplus · Accepted Answer

Equity Bank advising Dian of further action for failing to make payments does not violate any federal law, as creditors are allowed to inform debtors of potential consequences for non-payment. The Fair Debt Collection Practices Act applies to third-party debt collectors, not original creditors like banks.

Dian Takes Out a Loan from Equity Bank