QT Collection Agency Calls Rob Several Times a Day, and Sometimes

question 32

Multiple Choice

QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of​

• A) ​no federal law.
• B) ​the Fair and Accurate Credit Transactions Act.
• C) ​the Fair Debt Collection Practices Act.
• D) ​the Truth-in-Lending Act.

---

Definitions:

Moral Hazard

The situation in which an individual or entity is more likely to take risks because the potential costs will not be borne by them but by another party.

Efficient Behavior

Efficient behavior refers to actions that maximize the desired outputs or results with the least amount of wasted effort or resources.

Insurance Industry

The sector of the economy that provides coverage against financial loss, including various types of insurance products and services.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded.