Asked by Katelyn Chapman on Jul 26, 2024
Verified
Tia takes out a loan from Urban Bank. When she fails to make the scheduled payments, the lender advises her of further action that it will take. This violates
A) no federal law.
B) the Fair and Accurate Credit Transactions Act.
C) the Fair Debt Collection Practices Act.
D) the Truth-in-Lending Act.
Fair Debt Collection Practices Act
A U.S. federal law designed to protect consumers from abusive, deceptive, and unfair debt collection practices by debt collectors.
Urban Bank
A financial institution providing banking services predominantly in urban or metropolitan areas.
Scheduled Payments
Regular payments set up over a timeframe for repaying a loan or other financial obligation.
- Familiarize with the federal legislation regarding consumer protection and credit matters.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
A
Explanation :
The lender advising Tia of further action for failing to make scheduled payments does not violate any federal law listed. The Fair Debt Collection Practices Act applies to debt collectors, not original creditors like Urban Bank. The Fair and Accurate Credit Transactions Act and the Truth-in-Lending Act do not specifically address the scenario of a lender advising a borrower of further actions due to non-payment.
Learning Objectives
- Familiarize with the federal legislation regarding consumer protection and credit matters.