West Virginia Mortgage Law Practice Test

What act prohibits debt collection practices that use unfair or unconscionable means?

1. Fair Credit Reporting Act

2. Truth in Lending Act

3. Consumer Credit and Protection Act

4. Debt Collection Act

The correct answer is: Fair Credit Reporting Act

The correct answer is the Consumer Credit and Protection Act. This act specifically addresses abusive and deceptive practices in debt collection, ensuring that consumers are shielded from unfair or unconscionable means of collecting debts. It provides a framework for the proper conduct of debt collectors and sets limitations on their practices to protect consumers' rights, emphasizing fairness and transparency. While the Fair Credit Reporting Act focuses on the accuracy and privacy of information in consumer credit reports, it does not directly deal with the conduct of debt collection practices. The Truth in Lending Act primarily mandates disclosure requirements related to credit terms and does not specifically target debt collection methods. The Debt Collection Act, while it addresses debt collection, is typically not the primary legislation under which consumer protections are detailed as comprehensively as in the Consumer Credit and Protection Act.