Question 1

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except:
A) the race of the applicant
B) if the applicant has a checking account
C) if the applicant receives public assistance
D) the marital status of the applicant
E) all of the other choices are legitimate concerns

Accepted Answer

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or whether the applicant receives public assistance. Having a checking account is not a protected characteristic under the law.

Question 2

Which of the following is a prohibited basis under the Equal Credit Opportunity Act:
A) marital status
B) national origin
C) color
D) religion
E) all of the other specific choices are correct

Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance. Therefore, all of the other specific choices (A, B, C, and D) are correct as prohibited bases under the act.

Question 3

Under the Equal Credit Opportunity Act, lenders can:
A) not discriminate by charging different debtors different interest rates
B) discriminate against persons who receive welfare
C) discriminate against persons because of race
D) not discriminate against persons with low income
E) none of the other choices

Accepted Answer

The Equal Credit Opportunity Act prohibits lenders from discriminating against applicants based on race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

Question 4

Credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age is prohibited by:
A) the Equal Credit Opportunity Act
B) the Fair and Just Credit Opportunity Act
C) the Fair Credit Opportunity Act
D) the Justified Credit Opportunity Act
E) the Good-faith Credit Act

Accepted Answer

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age. The other answer options do not exist as federal laws.

Question 5

Under the Equal Credit Opportunity Act, a creditor is permitted to:
A) request any information they think necessary to make a decision about a credit applicant
B) discriminate against an applicant based on marital status
C) not count welfare benefits as income since they may end at any time
D) ask questions about applicant's plans to have children in order to calculate impact on future income
E) none of the other choices

Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination based on marital status, ensures that welfare benefits are counted as income, and forbids questions about plans to have children, making all other options incorrect practices under the act.

Question 6

If a violation of the Equal Credit Opportunity Act occurs the consumer can sue the creditor for:
A) actual damages
B) punitive damages up to $10,000
C) attorney's fees
D) court costs
E) all of the other specific choices are correct

Accepted Answer

The Equal Credit Opportunity Act allows consumers to sue creditors who violate the law, and they may be entitled to recover actual damages, punitive damages up to $10,000, attorney's fees, and court costs. Therefore, all of the other specific choices are correct.

Question 7

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act:
A) race
B) sexual orientation
C) age
D) religion
E) all of the other specific choices are prohibited bases

Accepted Answer

Sexual orientation is not currently a prohibited basis under the Equal Credit Opportunity Act. However, some states and localities do provide protections against discrimination based on sexual orientation in credit transactions. All of the other specific choices listed (race, age, religion, etc.) are prohibited bases under the Equal Credit Opportunity Act.

Question 8

Under the Equal Credit Opportunity Act, a creditor is permitted to:
A) request any information they think necessary to make a decision about a credit applicant
B) discriminate against an applicant based on marital status
C) consider information about indirect credit history of an applicant
D) ask questions about applicant's plans to have children in order to calculate impact on future income
E) none of the other choices

Accepted Answer

The Equal Credit Opportunity Act allows creditors to consider information about an applicant's indirect credit history, such as how they have managed other accounts, to make a lending decision. This is part of assessing the creditworthiness of an applicant. Discrimination based on marital status or asking about plans to have children is prohibited under this act, and while creditors can request information they believe is necessary, it must be within the confines of the law, which rules out options A, B, and D.

Question 9

If a creditor is found to have violated the Equal Credit Opportunity Act, he is liable for:
A) actual damages
B) punitive damages up to $10,000
C) attorney's fees
D) court costs
E) all of the other specific choices are correct

Accepted Answer

If a creditor is found to have violated the Equal Credit Opportunity Act, they are liable for actual damages, punitive damages up to $10,000, attorney's fees, and court costs. Therefore, all of the other specific choices are correct.

Question 10

Which of the following would be a "red flag" under the FTC's Red Flag Rule:
A) an alert from a consumer reporting agency
B) a suspicious document related to credit accounts
C) a notice from a customer about possible identity theft
D) a peculiar address
E) all of the other specific choices are correct

Accepted Answer

All of the other specific choices (A, B, C, D) could be considered red flags under the FTC's Red Flag Rule. An alert from a consumer reporting agency, a suspicious document related to credit accounts, a notice from a customer about possible identity theft, or a peculiar address could all indicate potential identity theft or other fraudulent activity. Therefore, all of these choices would be considered red flags.

Question 11

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit?
A) that her former husband ran up a large unpaid bills
B) that she is pregnant
C) that she receives Food Stamps
D) that she had six credit cards canceled for non-payment
E) all of the other choices are illegal to consider

Accepted Answer

The department store can legally consider the fact that the woman had six credit cards canceled for non-payment because it is relevant to her creditworthiness. However, options A, B, and C are all illegal to consider as they relate to personal information such as marital status, pregnancy, and receipt of public assistance, which are protected under anti-discrimination laws. Option E is incorrect because not all of the options are illegal to consider.

Question 12

If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information?
A) the name and address of the federal agency regulating compliance by the creditor
B) the basic provisions of the Equal Credit Opportunity Act
C) either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons
D) the name and address of the federal agency regulating compliance by the creditor and the basic provisions of the Equal Credit Opportunity Act
E) the name and address of the federal agency regulating compliance by the creditor and the basic provisions of the Equal Credit Opportunity Act and either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons

Accepted Answer

The creditor must provide written notice to the consumer containing the name and address of the federal agency regulating compliance by the creditor, the basic provisions of the Equal Credit Opportunity Act, and either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons. Therefore, option E is the correct answer.

Question 13

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except:
A) the race of the applicant
B) if the applicant has children
C) if the applicant receives public assistance
D) the marital status of the applicant
E) none of the other choices

Accepted Answer

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of race, marital status, whether the applicant has children, and if the applicant receives public assistance, making all the other choices incorrect instances of discrimination.

Question 14

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit?
A) that her former husband ran up a large unpaid bills
B) that she is pregnant
C) that she receives Food Stamps
D) that she is Hispanic
E) all of the other choices are illegal to consider

Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination based on marital status, race, color, religion, national origin, sex, or receipt of public assistance. Therefore, all other choices (A, B, C, D) are illegal to consider when deciding to grant credit.

Question 15

Equal credit opportunity refers to the requirement that creditors:
A) must disclose all relevant terms in credit transactions
B) must not use sex or race to determine a person's creditworthiness
C) must not use abusive debt collection techniques
D) all of the other specific choices are correct
E) none of the other specific choices are correct

Accepted Answer

Equal credit opportunity requires that creditors must not use sex or race to determine a person's creditworthiness. This is a violation of the Equal Credit Opportunity Act (ECOA), which prohibits discrimination based on characteristics such as race, color, sex, religion, national origin, age, marital status, or receipt of public assistance. Other options such as disclosing all relevant terms in credit transactions and using non-abusive debt collection techniques are also required, but they are not necessarily part of the equal credit opportunity requirement specifically. Therefore, the best choice is B.

Question 16

Which of the following is a prohibited basis under the Equal Credit Opportunity Act:
A) race
B) sex
C) age
D) religion
E) all of the other specific choices are correct

Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination against any applicant on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract), the fact that all or part of the applicant's income derives from a public assistance program, or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. Therefore, all of the other specific choices (race, sex, age, and religion) are prohibited bases under the ECOA.

Question 17

The Federal Reserve Board has written a regulation to implement the Equal Credit Opportunity Act, it is:
A) Regulation Z
B) Regulation B
C) Regulation A
D) Regulation J
E) none of the other choices

Accepted Answer

Regulation B is also known as the Equal Credit Opportunity Act (ECOA) and sets out rules regarding the granting of credit by lenders. It prohibits discrimination in credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, and other factors.

Question 18

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act:
A) marital status
B) sex
C) age
D) religion
E) all of the other specific choices are prohibited bases

Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination based on marital status, sex, age, and religion, among other factors. Therefore, all the specific choices listed (A, B, C, D) are indeed prohibited bases under the act.

Question 19

Under the Equal Credit Opportunity Act, lenders can:
A) not discriminate on religion even if people of that religion frequently default on their loans
B) discriminate against persons who receive welfare
C) discriminate against persons because of race
D) not discriminate against persons with low income
E) not discriminate by charging different debtors different interest rates

Accepted Answer

The Equal Credit Opportunity Act prohibits lenders from discriminating based on religion, race, or income source, including welfare. However, lenders can charge different interest rates based on creditworthiness, not as a form of discrimination.

Question 20

Under the Fair and Accurate Credit Transaction Act, the FTC has issued regulations:
A) that credit card receipts may not show more than the last five numbers of a card
B) that consumers must be allowed to correct bad information on their credit reports
C) that consumer information must be properly disposed of
D) that credit card details may not be printed on credit receipts
E) all of the other choices

Accepted Answer

All of the other choices are correct statements about the regulations issued by the FTC under the Fair and Accurate Credit Transaction Act. These regulations aim to protect consumer's sensitive information and give them the right to correct any inaccuracies in their credit reports. They also require proper disposal of consumer information and prohibit the printing of credit card details on receipts.

Quiz 19: Consumer Protection

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except:

Which of the following is a prohibited basis under the Equal Credit Opportunity Act:

Under the Equal Credit Opportunity Act, lenders can:

Credit discrimination on the basis of race, sex, color, religion, national origin, marital status, receipt of public benefits, the good-faith exercise of the applicant's rights under any part of the CCPA, or age is prohibited by:

Under the Equal Credit Opportunity Act, a creditor is permitted to:

If a violation of the Equal Credit Opportunity Act occurs the consumer can sue the creditor for:

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act:

Under the Equal Credit Opportunity Act, a creditor is permitted to:

If a creditor is found to have violated the Equal Credit Opportunity Act, he is liable for:

Which of the following would be a "red flag" under the FTC's Red Flag Rule:

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit?

If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information?

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of all except:

A woman applies for credit from a department store. Which of the following information is legal for the department store to consider in deciding if it should give credit?

Equal credit opportunity refers to the requirement that creditors:

Which of the following is a prohibited basis under the Equal Credit Opportunity Act:

The Federal Reserve Board has written a regulation to implement the Equal Credit Opportunity Act, it is:

Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act:

Under the Equal Credit Opportunity Act, lenders can:

Under the Fair and Accurate Credit Transaction Act, the FTC has issued regulations: