The Fair Debt Collection Practices Act

question 62

Multiple Choice

The Fair Debt Collection Practices Act:

• A) forbids class-action suits but permits individual ones against the debt collectors.
• B) permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against the consumer but may not disclose the nature or amount of the debt.
• C) permits debt collectors to contact third parties; the collectors must disclose that they are pursuing a debt against the consumer and may also disclose the nature or amount of the debt.
• D) forbids debt collectors from contacting third parties regardless of the disclosure or nondisclosure of the existence of the consumer's debt.
• E) permits debt collectors to contact third parties but the debt collector may not state that the consumer owes a debt.

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Definitions:

Due-on-sale Warranties

Clauses in a mortgage agreement that require the full loan balance to be repaid if the property is sold.

Express Warranties

Explicit guarantees made by a seller about the quality, safety, or performance of a product or service.

Certain Circumstances

Refers to specific conditions or factors that affect or determine the outcome or application of a rule in a particular case.

Disclaimer

A statement that denies responsibility or relinquishes a right, often used to avoid legal liability.