Podcast
Questions and Answers
What is a requirement of the Truth-in-Lending Act (TILA)?
What is a requirement of the Truth-in-Lending Act (TILA)?
- Debtors can dispute any debt indefinitely.
- Creditors must disclose financial responsibilities. (correct)
- Creditors must provide free credit reports.
- Interest rates must be fixed for the entire loan duration.
What does the Fair Credit Reporting Act (FCRA) primarily regulate?
What does the Fair Credit Reporting Act (FCRA) primarily regulate?
- Accuracy in credit reports (correct)
- Discrimination in credit applications
- Interest rate increases
- Debt collection practices
Which act prohibits credit discrimination based on various factors including race and sex?
Which act prohibits credit discrimination based on various factors including race and sex?
- Fair Debt Collection Practices Act
- Consumer Credit Card Act
- Equal Credit Opportunity Act (correct)
- Truth-in-Lending Act
What is the maximum obligation value for personal leases under the Consumer Lending Act?
What is the maximum obligation value for personal leases under the Consumer Lending Act?
Which legislation allows consumers to dispute the validity of a debt within a specific time period?
Which legislation allows consumers to dispute the validity of a debt within a specific time period?
Which organization enforces the Washington Consumer Protection Act?
Which organization enforces the Washington Consumer Protection Act?
What type of bankruptcies are primarily 'Voluntary' according to Chapter 7 of the Bankruptcy Code?
What type of bankruptcies are primarily 'Voluntary' according to Chapter 7 of the Bankruptcy Code?
Which act amended the Truth-in-Lending Act to add provisions regarding credit cards?
Which act amended the Truth-in-Lending Act to add provisions regarding credit cards?
Flashcards
Truth-in-Lending Act (TILA)
Truth-in-Lending Act (TILA)
Federal law requiring creditors to disclose loan terms, like APRs and fees, to consumers.
Fair Credit Reporting Act (FCRA)
Fair Credit Reporting Act (FCRA)
Federal law that regulates credit bureaus and protects accuracy in credit reports.
Equal Credit Opportunity Act (ECOA)
Equal Credit Opportunity Act (ECOA)
Federal law prohibiting credit discrimination based on protected characteristics like race, religion, etc.
Fair Debt Collection Practices Act (FDCPA)
Fair Debt Collection Practices Act (FDCPA)
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Chapter 7 Bankruptcy
Chapter 7 Bankruptcy
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Food & Drug Regulation under FDA
Food & Drug Regulation under FDA
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Consumer Protection under FTC
Consumer Protection under FTC
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Consumer Credit Card Act
Consumer Credit Card Act
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Study Notes
Consumer Issues
- Consumer protection laws aim to safeguard consumers from unfair or deceptive business practices.
- The FDA regulates food and drug safety, labeling, and effectiveness.
- The FTC regulates advertising and protects consumers from deceptive or unfair practices.
Primary Consumer Credit Protection Laws
- Federal Trade Commission (FTC) enforces consumer protection laws.
- Bureau of Consumer Protection also enforces consumer protection laws.
- Truth in Lending Act (TILA): Requires creditors to disclose APRs, transaction fees, and origination charges. Provides for penalties for violations.
- Consumer Lending Act: Applies to personal leases over four months, limiting obligation value to $50,000.
- Consumer Credit Card Act: Amends TILA, limiting interest rate increases and fees. Requires notice of rate changes and specific bill distribution times.
- Fair Credit Reporting Act (FCRA): Regulates credit bureaus and ensures accuracy in credit reports. Amended by the Fair and Accurate Credit Transactions Act (FACTA) to provide free annual credit reports.
- Equal Credit Opportunity Act (ECOA): Prevents credit discrimination based on various factors such as race, sex, age, etc.
- Fair Debt Collection Practices Act (FDCPA): Ensures fair and transparent debt collection practices. Allows debtors to dispute debt validity within 30 days. Provides legal recourse for violations.
WA Consumer Protection
- Washington (WA) has specific consumer protection laws, codified as RCW 19.86.
- These laws are enforced by the WA Attorney General.
Bankruptcy
- Bankruptcy is a legal process that resolves debt issues.
- The Bankruptcy Code (U.S.C. Title 11) was enacted in 1978.
- Article I, Section 8 of the U.S. Constitution allows for establishment of uniform bankruptcy laws.
Chapter 7 Bankruptcy
- Most Chapter 7 bankruptcies are voluntary filings.
- Individuals or businesses filing for Chapter 7 bankruptcy declare inability to repay debts.
- Certain assets may be liquidated for creditor repayment.
- Creditors often receive little to no payment in Chapter 7.
Chapter 13 Bankruptcy
- Chapter 13 bankruptcies are voluntary and are for individuals and sole proprietorships.
- Allows for a court-protected repayment plan over several years.
Chapter 11 Bankruptcy
- Businesses can choose to "restructure" rather than fully discharge debts.
- Debtor businesses negotiate a repayment plan with creditors and the court.
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