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:

Foreign Exchange Rate

The price at which one currency can be exchanged for another currency.

International Customer

A customer based in a country different from the one where the seller or service provider is located, often involving cross-border transactions.

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Other Comprehensive Income

A component of shareholders' equity that includes income and expenses not recognized in net income, such as unrealized gains and losses on investments.