Asked by Jessica Romero on Jun 21, 2024
Verified
Isabella wants to purchase a new refrigerator.When she applies for an installment loan at the appliance store,her loan application is turned down.What consumer law says that a lender must give her the reason,in writing,that she was denied the loan?
A) Truth-in-Lending Act
B) Equal Opportunity Act
C) Fair Credit Reporting Act
D) Fair Debt Collection Practices Act
Equal Opportunity Act
A law designed to ensure that all individuals have a fair chance to participate in certain activities or obtain goods and services, without discrimination based on factors like race, gender, or ethnicity.
Fair Credit Reporting Act
The law that gives protection to a consumer in the case of errors on a monthly credit card statement; consumers are not responsible for a disputed amount or the finance charges that amount accrues, until the error is resolved.
- Understand consumer protection laws related to lending and credit reporting.
Verified Answer
IH
Iyanna HolmesJun 27, 2024
Final Answer :
C
Explanation :
The Fair Credit Reporting Act requires that a lender must provide a written notice to a consumer if their loan application is denied based on information obtained from a credit report. This notice must include the reasons for the denial and the credit reporting agency's contact information.
Learning Objectives
- Understand consumer protection laws related to lending and credit reporting.