Question

Simone applies for a mortgage loan from National City Bank. National City Bank's description of the various charges and penalties that are part of the mortgage are so confusing that she is unable to determine whether the loan offered by National City is better or worse than other banks.
National City has violated the Consumer Credit Protection Act.

True or false?

Answer 1

Answer:

True.

Explanation:

Consumer Credit Protection Act is a law of United Stated which was enacted in 1968. This act protects the consumer against the lenders. This law set out how credit is managed on the purchases of consumer.

National City Bank has confused Simone by briefing about several mortgages and penalties of the loan. Simone is unable to identify whether mortgage loan is better option or she should consider other banks. This has violated the Consumer Credit Protection Act.