Name: Taylor Turley Date:2-6-17 Period:5th

Credit and the law

Credit problems are not confined to individuals and families with low
incomes. Some credit problems are the result of choices debtors make, but
others are the result of mistakes and crimes. All consumers can benefit
from knowing the basics about credit laws and solving credit problems.

Please research the following questions and type your responses using complete
sentences, spell check, and proper grammar. Save a copy to your H: drive.

You are not allowed to cut and paste ANYTHING!

1. Examine methods for financing purchases. (min of 4 bullet points)

Meet with financial institutions
Consider alternate loan options
Asses the collateral you can provide
Taking out a loan
Get pre-qualified for several loans

2. Research the common ways identity theft occurs. (min of 5 bullet points)
Pretexting
Dumpster diving
Stealing wallet or purse
Skimming debit or credit card numbers
Obtaining credit report

3. Research Chapter 7 and Chapter 13 bankruptcy. (min of 2 paragraphs-one for ch7 and
one for ch13)
Chapter 13 bankruptcy does involve the creating of a plan a debtor to repay
all or part of their debts, it is also sometimes called wage earners plan. This
chapter creates a time period for the debtor to repay their debts between three
to five years.
This specific time period can sometimes be altered by the court due to low
monthly income and adjusted to suit the clients needs. If said client has a
higher monthly income, then the plan must only be up to five years. This plan
generally sticks to only being three to five years, but with the exception
sometimes, not all times.

4. Write about what you should do if your ATM card is stolen. (min of 4 bullet points)
Update your files
follow up with a letter or email
check your card statements carefully
check if your homeowners insurance policy covers your liability
contact your atm or debit card issuer

5. Research the credit scoring process. (min 1 paragraph)

Name: Taylor Turley Date:2-6-17 Period:5th
What helps a lot of people out is their credit score, because it gives lenders a
faster measurement of their credit, unlike perhaps it had used to be. The process
used to be very slow and ongoing, ineffective, inconsistent, and sometimes unfairly
based. The process gives people faster loans, credit decisions are fairer, credit
mistakes count for less, more credit is available, and rates are lower.

6. Est. reasons for maintaining sound credit ratings. Why should you maintain a good
credit score? (min 1 paragraph)
What if you wanted to get student loans for your
collage, perhaps a mortgage on your home, or something you may need of
want. That credit is coming from a bank extending the time for you, but without
your three-digit credit score those benefits will not and cannot be provided for you.
If you have bad credit you most likely wont qualify for even a credit
card, you wont be able to buy or possibly rent/less a car or motor vehicle.
Also if your credit score is low enough you wont be eligible for some jobs,
because they can see that you cannot handle your debt or that you dont care
about your credit, that is not something you want.

7. Analyze the costs and conditions of secured and unsecured loans. (minimum of 2
paragraphs)
On one hand there are unsecured loans, which in fact are the complete
opposite of secured loans
And will have a higher risk putting money into these such loans. The main problem
with unsecured loans is that you are not able to put off property or assets if the
loan fails then you lose if you cannot replace this. Also they can and will judge you
upon the three Cs of credit including conditions, capacity, character, collateral,
capital. Secured loans are
generally the better and the best way to go when it comes to loans, so you are
able to put your house, and your cars said loans and it will be protected. Loans
such as this often guarantee lower and or better rates, and also longer payment
terms. This is because it is more stable though this does not mean you do not have
to pay back your loans you owe. You will indeed need to pay it or you will lose
whatever you have taken the loan out for or the loan must be paid amenity in full.

8. Analyze credit and loan laws. Look up the following and summarize what they do.
Consumer Credit Protection Act: This particular act protects employees from discharge
by other employees from discharge, because wages were demolished because of
debt, this limits the amount of employee earnings.
Equal Credit Opportunity Act: Makes it unlawful for creditor to discriminate against
any applicant with respect of credit transaction, basis of race, religion, color, national
origin, and the sex of the person.
Fair Credit Reporting Act: This is to promote the accuracy, fairness, and privacy of
consumer information.
Fair Credit Billing Act: this provides guidelines for both consumers and creditors to
manage disputes regarding billing statement or statements.
Name: Taylor Turley Date:2-6-17 Period:5th
Fair Debt Collection Practices Act: this limits the behavior and actions of the third-
party debt collector who are attempting to collect debt on behalf of someone else. o