What Is Not a Correct Statement Concerning the Fair Debt

question 35

Multiple Choice

What is not a correct statement concerning the Fair Debt Collection Practices Act?

• A) It prohibits improper practices in the collection of consumer debts.
• B) It applies to original creditors who are collecting from original debtors.
• C) The validity of the debt is not a defense.
• D) Violators are liable to debtors for damages.

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Definitions:

Consumer Theory

A branch of microeconomics that studies how people decide what to spend their money on based on their preferences and budget constraints.

Corporate Policy

Guidelines and rules established by a company to dictate its operations, decisions, and organizational behavior.

Public Policy

A set of actions and regulatory measures designed and implemented by government bodies to address issues of public concern and guide the development and behavior of a society.

Allocate Incomes

The process of distributing monetary earnings among different factors of production or individuals in an economy, reflecting the contribution to the production process.