Asked by Devyn Murray on Apr 28, 2024
Verified
If a debtor defaults on a credit contract, the creditor may:
A) impose a late charge.
B) garnish wages if there has been a court proceeding to enforce collection of a judgment.
C) declare the entire balance of the debt immediately due and may sue on the debt.
D) All of these.
E) Both impose a late charge and declare the entire balance of the debt immediately due and sue on the debt.
Credit Contract
A legally binding agreement between a borrower and a lender where the borrower is extended a line of credit and agrees to repay the money, subject to agreed terms and conditions.
Garnish Wages
A legal process in which a creditor obtains a court order requiring an employer to withhold a portion of an employee's earnings for the repayment of debt.
Late Charge
A fee assessed for payments made after their due date.
- Acquire knowledge of the rights afforded to consumers and the constraints placed on creditors by the Fair Credit Billing Act.
Verified Answer
ND
Nellie DuncanMay 02, 2024
Final Answer :
D
Explanation :
All of these actions (imposing a late charge, garnishing wages following a court proceeding, and declaring the entire balance due immediately and suing on the debt) are potential steps a creditor may take if a debtor defaults on a credit contract.
Learning Objectives
- Acquire knowledge of the rights afforded to consumers and the constraints placed on creditors by the Fair Credit Billing Act.