4G: Understanding Credit and Consumer Rights

Front

What is the primary purpose of the Equal Credit Opportunity Act?

Back

To prevent discrimination in credit transactions

Front

What is a key feature of the Truth in Lending Act?

Back

It requires lenders to disclose the annual percentage rate (APR) to borrowers

Front

Explain how the Fair Credit Reporting Act impacts consumers' rights.

Back

It gives consumers the right to dispute inaccurate information on their credit reports.

Front

What is the main goal of the Fair and Accurate Credit Transactions Act (FACT Act)?

Back

To enhance the accuracy of consumers' credit reports and prevent identity theft

Front

How does the Federal Trade Commission (FTC) protect consumers?

Back

By enforcing laws against deceptive advertising and unfair business practices

Front

What role does the Better Business Bureau (BBB) play in consumer protection?

Back

It rates businesses based on consumer feedback and complaints

Front

Identify a key difference between the Fair Credit Reporting Act and the FACT Act.

Back

The Fair Credit Reporting Act deals with credit report accuracy, while the FACT Act enhances consumer access to credit information.

Front

Which organization is responsible for enforcing the Equal Credit Opportunity Act?

Back

Consumer Financial Protection Bureau

Front

Describe a scenario where the Truth in Lending Act would be applicable.

Back

A consumer receives a credit card offer with unclear terms.

Front

What is one of the responsibilities of the Federal Trade Commission?

Back

To prevent anticompetitive, deceptive, and unfair business practices