Question

1) The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from creditors. It forbids your creditors, or those collecting on their behalf from:

A. Impersonation or claims of affiliation with the government, including the use of a badge or uniform or other official insignia.

B.Repeated calls with the intent to annoy or harass you, and the use of obscene or abusive language.

C.Communication at unusual or inconvenient places and times or through third parties without debtor consent.

D. All the above.

2.Clothing, purchased with a credit card would be would be considered "bad" debt.

a. True

b.False

3.When considering a 0% APR credit card balance transfer offer, you should Know the APR that will go into effect after the promotional period has ended.

a.True

b.False

Answer 1

1. Answe option D : All the above.

A collector of debt are not allowed to

a. threaten the debtor with violence or harm them physically and mentally.

b. Usage of vulgar languages

c. Usage of phone repeatedly to annoy the debtor.

d. Indulgence in impersonation fraudulently.

Since all the above are there in the option the answer is option D.

2. Answer: True

A good debt is that investment which increases the net worth and has a future economic increase in the value of the investment.

Bad debt is that debt which does not increase net worth and the person incur such a debt without paying any cash.

In the present case the person uses credit card for purchasing clothing which does not increase net worth therefore its a bad debt.

3. True: After the introductory period has ended the person have to pay the high interest for the expenses paid by credit card. Even befor the introductory offers ended the person realises the burden of the high interest. It is therefore advisable that before availing the credit card the person should analyse whether he has the potential to pay the debt once the introductory offer gets over.