According to the law, a creditor must give their cardholders 30 days notice before renewing a consumer's account.

Question

BlackTom AI · Accepted Answer

The question concerns whether the law requires a creditor to give cardholders 30 days notice before renewing a consumer's account.
Option 1: True. This statement would assert that the law mandates a 30-day notice for renewal in all cases. In many jurisdictions and contexts, renewal notice requirements are not universal. Some consumer protection statutes or contract terms may specify notice periods for certain products or renewals, but there is no blanket, nationwide rule that all creditors must provide 30 days’ notice before every renewal. Therefore, describing this as an automatic legal obligation across the board would be inaccurate.
Option 2: False. This option claims there is no universal 30-day renewal notice requirement in the law for all consumer account renewals. Given the variability in laws by country, state, and specific product (credit cards, services, subscriptions), and the fact that renewal terms are often governed by contract law, lender policies, and applicable consumer protection statutes, it is plausible that many renewals do not mandate a 30-day notice. This aligns with the idea that notice requirements are not universally standardized at a single 30-day threshold and depend on jurisdiction and the particular contract.
To evaluate accuracy, consider that some jurisdictions do impose notice requirements for certain types of lending or service agreements, while others leave renewal terms to contract provisions or to existing statutory frameworks that may specify different periods or none at all. Misconceptions to avoid include assuming a single global rule, or assuming that notice is always required regardless of the product type or governing law. Think about the differences between true automatic renewal laws, opt-in renewal terms, and standard renewal clauses that may or may not require advance notice.
In summary, the statement labeled as True overgeneralizes renewal notice obligations, whereas the False option acknowledges that renewal notice requirements are not universally fixed at 30 days and depend on context, jurisdiction, and specific contract terms.

FSOS 1301 (001) Final Exam/Quiz

According to the law, a creditor must give their cardholders 30 days notice before renewing a consumer's account.

View Explanation

Log in for full answers

Similar Questions

Consumer protection laws include regulating which type(s) of protections?

This act prohibits debt collectors from using unfair, deceptive, or abusive practices to collect from consumers.

Kimberly moved last month. However, she is still not receiving her credit card statements in the mail despite the fact that she provided her lenders 30 days notice of her change of address. The Fair Credit Billing Act will protect Kimberly from this error.

The __________________________ is a federal law that mandates funeral providers to give customers an itemized price list and other relevant information to help them make informed decisions about funeral arrangements.

Question at position 6 Whose job is it to go after online scams (ex: untrue claims from supplement companies or others promoting their product)?Federal Trade CommissionCongressNIH (National Institute for Health)Center for Disease Control (CDC)

The Federal Trade Commission considers a product new only

What legislation was passed more than 100 years ago, prohibiting companies from making fraudulent claims about their products, or advertising those claims to the general public?

The transition from the “buyer beware” era to modern consumer protection laws primarily aims to:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler