Tim has been approached by Kent regarding the payment of Tim's credit card bill. Kent says he is acting on behalf of the bank to get assurance that Tim will pay the bill within a specific period of time. Kent is an outside agent who is not an employee of the bank. Which of the following legislations has the bank violated by contracting Kent to contact Tim?
A) Fair Credit Reporting Act
B) Fair and Accurate Credit Transactions Act
C) Fair Credit and Charge Card Disclosure Act
D) Fair Debt Collection Practices Act

Question

Quizplus · Accepted Answer

The bank may have violated the Fair Debt Collection Practices Act by hiring an outside agent to contact Tim regarding payment of the credit card bill. The Act regulates the behavior of third-party debt collectors and prohibits certain practices, such as using false or misleading statements, harassing or threatening the debtor, and contacting third parties about the debt. Kent's actions may be considered a violation of these provisions. The other options listed are not directly related to the bank's behavior in this situation.

Tim Has Been Approached by Kent Regarding the Payment of Tim's