Question

1.All but which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA)?

• You can sue for damages if your rights under the act have been violated.

• Lenders are required to provide a consumer’s credit score as well as any factors that affected that score if the lender took any adverse action based on that score.

• You must provide written consent before a CRA can provide information to your employer or prospective employer.

• Negative information more than three years old must be removed from a consumer’s credit file.

2..Chapter 11 of the Bankruptcy Act allows creditors to submit a provisional debt reorganization plan while the debtor, under the supervision of the court, works out a financial reorganization plan and continues to pay creditors.

true/false

3.The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 has which of the following key provisions?

• Lenders can issue credit cards to those under age 21 without any objections.

• Interest rates may be raised in the first year the card is issued.

• Without the consumer’s specific agreement, banks cannot accept charges where doing so puts creditors over their limits.

• Credit card companies can increase the annual percentage rate on all existing account balances within six months of issuing the card.

4.Under Chapter 11 of the Bankruptcy Act all but which of the following is true?

• Debtors may not voluntarily seek reorganization.

• The creditors may petition for an involuntary action.

• One or more committees of creditors is appointed to participate in bankruptcy procedures.

• Typically in the case of a business, the debtor continues operations.

Answer 1

1. Negative information more than three years old must be removed from a consumer’s credit file is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA). Whereas the remaining ones are false in this context.

2. False. Bankruptcy is an adjudication relieving a debtor of his or her liabilities in full or in part. Any individual, partnership or company may seek relief from debtors. Reorganization (Chapter 11 of the Bankruptcy Act), both individuals and companies, creditors are held from the debtor's assets while the debtor, under court oversight, drafts a financial reorganization plan and proceeds to pay creditors.

3. Without the consumer’s specific agreement, banks cannot accept charges where doing so puts creditors over their limits are the key provisions which the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 has. Whereas the remaining provisions are not been part of it.

4. Debtors may not voluntarily seek reorganization is true under Chapter 11 of the Bankruptcy Act. Whereas the remaining ones are false under Chapter 11 of the Bankruptcy Act.

Note: If this answer has helped you, please give an Up-vote, this will encourage me, thank you!