Question

Under the Federal Fair Debt Collection Practices Act, which of the following would a collection service using improper debt collection practices be subject to?

1) Fines and penalties
2) Legal action
3) Loss of license
4) All of the above

Answer 1

Under the Federal Fair Debt Collection Practices Act, a collection service using improper practices would be subject to fines and penalties, legal action, and potential loss of license, indicating that the correct answer is 4) All of the above.

Step-by-step explanation:

Under the Federal Fair Debt Collection Practices Act (FDCPA), a collection service using improper debt collection practices would be subject to several consequences, including:

1. Fines and penalties, which may be imposed for violations of the FDCPA.
2. Legal action, which can be taken by consumers who have been subjected to abusive, deceptive, or unfair debt collection practices.
3. Potential loss of license, which may occur if the collection agency repeatedly fails to comply with the law or engages in particularly egregious conduct.

Therefore, the correct option is

4) All of the above.

Collection agencies must adhere to the FDCPA regulations to avoid these serious repercussions.