In Chuway V

question 446

True/False

In Chuway v. National Action Financial Services, where Chuway sued a debt collector for violating the Fair Debt Collection Practices Act by having unclear language in a collection letter, the appeals court held that the law had been violated for failure to use precise language in the letter.

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Definitions:

Guaranty

Guaranty is a legal commitment by a guarantor to pay a debt or perform an obligation if the original debtor fails to do so.

Cosigner

An individual who agrees to be equally responsible for the repayment of a loan if the primary borrower fails to pay.

Voluntary Agreement

A consensual arrangement between parties, often formalized through a contract, without coercion or duress.

Bankruptcy

A judicial process concerning an individual or business that is incapable of paying off its accumulated debts.