Question

On behalf of RiteNow Collection Agency, Sid poses as a police officer in an attempt to collect payment from Tylo for a shipment of scuba equipment that she returned to Undersea Company two months earlier. This violates:

Option 1: No federal law.

Option 2: The Fair Credit Reporting Act.

Option 3: The Fair Debt Collection Practices Act.

Option 4: The Truth-in-Lending Act.

Answer 1

Sid's action of posing as a police officer to collect payment infringes upon the Fair Debt Collection Practices Act (FDCPA), prohibiting deceptive practices by debt collectors. Protecting personal information and monitoring credit history are critical in preventing and detecting identity theft and fraud.

Step-by-step explanation:

Based on the scenario where Sid poses as a police officer to collect payment from Tylo, this action violates a specific federal law. It is important to protect oneself by providing only the minimum information requested and understanding why the information is being collected.

Additionally, monitoring your credit history can help in identifying any red flags indicating potential identity theft or fraud. This scenario underscores the value in safeguarding personal information as identity theft can lead to significant financial loss and unauthorized purchases.

Regarding the specific laws in question, Option 3: The Fair Debt Collection Practices Act (FDCPA) is the correct answer.

The FDCPA prohibits debt collectors from using deceptive or fraudulent means to collect a debt, which would include impersonating law enforcement. The other options are not directly related to the prohibited practices of debt collection.