The Fair Debt Collection Practices Act Requires a Debt Collector

question 76

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:

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.