| LATEST EXAM UPDATES| 2024/25 |AFSB 151 6: CREDIT INVESTIGATIONS EXAM REVIEW QUESTIONS AND ANSWERS, 100% ACCURATE/

AFSB 151 6: CREDIT INVESTIGATIONS EXAM REVIEW QUESTIONS AND ANSWERS, 100% ACCURATE/ credit risk - -the chance that a party will be unable to make required payments on an obligation as they become due most significant federal credit law - -Consumer Credit Protection Act Title 1 - -Truth in Lending Act- ensures meaningful disclosure of credit terms so that the consumer can compare the various borrowing terms available and have better information about using credit how might title 1 affect surety - -if the surety charges interest on the loan and to the extent that the surety anticipates interest charges Title II - -prevents organized crime relating to credit extension, making it a federal crime to make, finance or collect extensions of credit wrongfully. government contracting officers closely examine sureties fees title III - -Restricts creditors rights to garnish (withhold) debtors wages. Sureties that have paid losses may seek salvage from indemnitors and principals Title IV - -established a bipartisan National Commission on Consumer Finance whose purpose was to study and appraise the consumer finance industry and credit transactions and to recommend additional legislation. After conducting its study and releasing its findings, the commission disbanded Title V - -Credit Card Issuance Act Title VI - -Fair Credit Reporting Act requires that consumer reporting agencies adopt reasonable procedures for meeting the needs for consumer credit. protects from innacurate info in credit reports Title VII - -Equal Credit Opportunity Act prevents creditors from discriminating against applicants on the basis of sex, marital status, race, color, religion, national origin, age or receipt of public assistance income which title most directly relates to surety industry - -title VI, VII Title VI and surety (5) - -illegal to obtain a consumer credit report for any purpose not in connection has to be on behalf in connection with allowable purpose cant issue a report with bankruptcies occuring more than 10 yrs ago, crimes, judgements, arrests, defaults more than 7 years ago (conditions dont apply to credit or insurance actions of more than 150,000) -civil liability and punitive damages for non compliance -FTC and other federal agencies enforce it who enforces compliance with the fair credit reporting act - -FTC and other federal agencies North American Industry Classification System (NAICS) - -6 digit identification codes to identify a given line of busines