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Jon Perrault

Mrs. Lehto
Introduction to the World of Business-1st Hour
24 March 2014
1.) usury law-a law restricting the amount of interest that can be charged for credit
credit report-a record of an individuals past borrowing and repayments
collection agent-a person or business that collects payments for overdue bills
identity theft-occurs when someone steals anothers financial information with the intention of
committing fraud under that persons identity.
credit counselor-helps people work out a plan for getting out of debt
consolidation loan-combines a consumers debts into one loan with lower payments.
bankruptcy-a legal process in which a borrower is relieved of debts after showing an inability to
pay.
2.) There are many laws about the regulation of credit. The Consumer Credit Protection Act
requires creditors to inform consumers about the costs and terms of credit. The Equal
Opportunity Act states that credit applications can only be judged on the basis of financial
responsibility. The Fair Credit Reporting Act states that you have the right to review and correct
information used by credit reporting agencies. The Fair Credit Billing Act requires creditors to
correct billing mistakes brought to their attention. The Fair Debt Collection Practices Act
regulates collection agencies and makes sure that they have fair collection.
3.) The Consumer Credit Protection Act requires creditors that they provide information about
the credit and its terms and conditions. This makes sure that creditors dont scam consumers for
their money. The Fair Credit BIlling Act protects you by making sure that you can bring up
errors with your bill so that you dont have to pay for what you didn't spend.
4.) Sources of credit fraud: Sharing SSN, copying credit card information, swiping and stealing
credit card information. You can prevent it by not keeping important information with you,
making sure your card is given back, and reviewing your monthly statements for errors.
5.) You can repair credit problems by contacting your creditors, talking to a credit counselor to
help clean up your debt, combining your debts into a consolidation loan, and filing for
bankruptcy.
6.) It can help protect a consumer because then the consumers will not have any surprises on
their statement about the interest and credit terms and conditions so they will not have any
issues with the creditor taking more money than they are supposed to.
7.) This change has occurred because creditors and bankers think that it is important to make
sure that your credit rating is not too low so that you can adjust it and look out for errors. Also, it
is so easy to get one that they can give them out for free.

8.) They might need to use that law because they do not want to be charged for something that
is broken or damaged and will be unusable by the time that they are charged for it.
9.) The creditors cannot verify that you are who you say that you are and cannot review the
documents about why the mistake is actually a mistake. (ie the receipts)
10.) If a person sees an error on their credit report, they should contact the creditor or lender
and tell them about the error and they will verify that this is a mistake.
11.) They are willing to make these changes because at that point in time, the creditors just want
the money that they lended to come back into their hands.
12.) It would be denied because they did not have financial responsibility so they cannot get
credit and the only reason to be denied credit is if you dont have financial responsibility.
15.) In chapter 7 bankruptcy, all of your debts are wiped free. In order to qualify for this chapter,
you must prove that you have very little or no income coming in. If you make too much money,
you have to file for chapter 13. Chapter 13 is a reorganization of your debts so that you will be
able to pay off some of the debts. If you do not qualify for chapter 7, you have no choice but to
file for chapter 13. In chapter 13, you get to keep all of your property in exchange for paying
back a portion of your debts through the use of a repayment plan.