The Fair Debt Collection Practices Act Requires a Debt Collector

question 5

Multiple Choice

The Fair Debt Collection Practices Act requires a debt collector to provide the consumer with a written notice. What information must be contained in this notice?

• A) The amount of the debt, with interest and penalties clearly delineated.
• B) The name and phone number of the current creditor and former creditor.
• C) A statement telling the consumer that he can request verification of the alleged debt.
• D) A copy of the original credit contract with the original creditor.

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Definitions:

Maturity Value

The amount of money an investment will be worth at the end of its term, including the original principal and all accrued interest.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Market Rate

The prevailing rate at which a specific asset can be bought or sold in the marketplace, often influenced by supply and demand.

Simple Interest

Interest charged exclusively on the principal sum, or on the part of the principal that has not been paid yet.