Under the Fair Credit Billing Act, If a Consumer Reports

question 74

Multiple Choice

Under the Fair Credit Billing Act, if a consumer reports an error in the amount on his charge account bill, until the creditor responds, it cannot:

• A) restrict the use of an open-ended credit account because the disputed amount is unpaid.
• B) report the disputed amount as delinquent.
• C) take any action to collect the disputed amount.
• D) All of these are correct.

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Definitions:

Fixed Cost

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.

Special Order

A one-time customer order, often at a negotiated price, that is outside the company's standard range of products or services.

Irrelevant

Pertains to information or factors that do not influence or impact a decision-making process.

Split-off Point

The stage in a production process where joint products are identifiable or separable into individual products.