Question

Which law prohibits abuse by professionals hired to collect money owed to a business?

A) Fair Credit Billing Act

B) Fair Credit Reporting Act

C) Fair Debt Collection Practices Act

D) Fair and Accurate Credit Transactions Act

Answer 1

The law that prohibits abuse by professionals hired to collect money owed to a business is the Fair Debt Collection Practices Act (FDCPA). The FDCPA was enacted in 1977 to protect consumers from abusive and unfair collection practices.

Step-by-step explanation:

The law that prohibits abuse by professionals hired to collect money owed to a business is the Fair Debt Collection Practices Act (FDCPA).

1. The FDCPA was enacted in 1977 to protect consumers from abusive and unfair collection practices.
2. It sets specific guidelines for how debt collectors can communicate with debtors, prohibits harassment, and establishes penalties for violations.
3. The act applies to professionals hired to collect debts on behalf of a business, including collection agencies, lawyers, and businesses that collect debts for others.