The Fair Debt Collections Practices Act Applies to Both Commercial

question 6

True/False

The Fair Debt Collections Practices Act applies to both commercial and consumer debt.

---

Definitions:

Annual Percentage Rate

A measure of the cost of borrowing expressed as a yearly interest rate that includes fees and costs associated with the loan.

Effective Annual Rate

The real return on an investment, taking into account the effect of compounding interest as opposed to just the nominal rate.

Annuity Due

An annuity in which the payments are made at the beginning of each period; contrast with ordinary annuity, where payments are made at the end of the period.

Ordinary Annuity

Uniform payments issued at sequential period endings, over a pre-defined timespan.