A Call Provision Gives the Issuing Company the Option to Recall

question 106

True/False

A call provision gives the issuing company the option to recall the debt issue at an effective interest rate less than the contract rate.

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Definitions:

Payment Full Monthly

This refers to the practice of paying the entire amount due for a service or debt every month, without carrying over any balance to the next month.

Truth in Lending Act

A national regulation aimed at encouraging the knowledgeable use of consumer credit through mandated disclosures regarding its conditions and expenses.

Fair Credit Reporting Act

A U.S. federal law that regulates the collection, dissemination, and use of consumer credit information.

Credit Bureaus

Organizations that collect, maintain, and provide consumer credit information for the purpose of evaluating creditworthiness.