The Fair Debt Collection Practices Act Prohibits the Following by Debt

question 410

Multiple Choice

The Fair Debt Collection Practices Act prohibits the following by debt collectors except:

• A) harassing, late-night phone calls
• B) discussing a debt with neighbors
• C) publication of a list of debts owed
• D) threatening violence if a debt is not paid
• E) all of the other choices are prohibited

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Definitions:

Rate of Default

The probability that a borrower will be unable to make required payments on their debt obligation.

Credit Period

The duration during which a buyer can purchase goods or services on credit before payment is due to the seller, often expressed in days.

Percentage Cost

The cost expressed as a percentage of the purchase price or other value, often used to analyze and compare costs or expenses.

Default Rate

This is the rate at which borrowers fail to make payments on their debts, often expressed as a percentage.