7. Consumer Protection and Failures

The U.S. Federal Trade Commission enforces the Fair Credit Reporting Act (FCA). Which of the following accurately describes the intent of this act?

-To mandate credit bureaus to report only accurate information and let people know what is in their credit report and correct errors

-To mandate lenders to explicitly state the APR being charged on the loan and explain how much interest will be paid on the loan

-To ensure that banks that want to merge or expand can demonstrate that they are lending and providing financial services to people across their geographical area

-To increase the amount of consumer protection in financial markets

Which of the following is a common criticism of the Fair Credit Reporting Act? Check all that apply.

-Credit reports increasingly being used in the employment process

-The threat of government overreach

-Continuing presence of redlining in urban and minority areas

-The burdensome and expensive certification documentation