Chapter 27 - Credit and the Law

A law restricting the amount of interest that can be charged for credit.

The credit industry is regulated and controlled by ______.

A record of an individual's past credit history of borrowing and repayments.

Consumers should order their credit report to check for mistakes

A legal process where a borrower is relieved of debts after showing he/she cannot make payments

Which one is not a reason people commit identity theft?

A law to prevent deception/harassment/unfair debt collection practices by collection agents.

Lenders rely heavily on ____ when they consider loan applications.

A consumer should periodically order his/her credit report to check for mistakes.

Only consumers with bad credit have a credit report.

Which one is NOT one of the credit bureaus?

If a credit card balance is high and you cannot afford the monthly payments, you should:

In a bankruptcy, creditors can take some/all of a debtor’s assets to get back their money.

A law that restricts the amount of interest that can be charged for credit is known as _____.

A person or business that collects payments for overdue bills.

This person helps people work out a plan for getting out of debt and manage their money.

Filing for bankruptcy should be the first thing you do if you are having financial problems.

Federal, state, and city governments control and regulate the credit industry.

Posing is pretending to be what one is not.

Credit counselors are unable to restore good credit to someone's bad credit score.

A federal law that allows people to examine/correct information used by reporting agencies.

A law where credit applicants can be judged only on the basis of financial responsibility.

Consolidation loans:

A federal law where creditors must inform consumers about the costs and terms of credit.

This combines a person's debts into one loan in order to help lower payments.

Consumers who are unable to work out their problems should talk to a consumer counselor.

Which one is NOT a reason a creditor can deny credit.

People who commit identity theft often steal a victim's

Most states have set a _____ on the interest rates they may charge for certain types of credit.

The federal law that regulates collection agencies is the

This U.S. agency enforces credit laws and helps consumers with credit problemsand complaints.

Which one is NOT a step when you discover your identity has been stolen?

A federal law that requires creditors to correct billing mistakes when asked to correct it.

The agency that enforces credit laws and helps consumers with credit problems and complaints.

The first step you should take when you get a credit or ATM card is:

A stolen credit card can lead to a better life.

When someone steals another person's financial information with the intent to commit fraud.

People who discover that their identity has been stolen should

If your credit card is lost/stolen and someone uses it, your payment for any purchases is $500.

Credit counselors

To make comparing credit cards costs easier, Congress passed _____.

A legal process where a borrower is relieved of debts after showing an inability to pay is a consolidation loan.