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The Ultimate Uniform Debt Management Services Act Quiz
by Staff
Being in over your head in debt can be overwhelming. Rest assured that the American government is looking out for your best interests. The Uniform Debt Management Services Act is intended to protect you as a consumer when seeking debt management services. Take this quiz and educate yourself about this important law.

The Uniform Debt Management Services Act regulates:

  • debt collectors
  • banks
  • credit counseling agencies

Why was the Uniform Debt Management Services Act proposed?

  • There was no existing debt management law.
  • The previous federal debt management law was insufficient to handle the economic crisis.
  • Debt management law varied too much from state to state.

The Uniform Debt Management Services Act:

  • overrules previous state law
  • guides states on how to handle debt management
  • serves as a uniform state law across the country

What was a problem with credit counseling agencies prior to the Uniform Debt Management Services Act?

  • excessive cost to the consumer
  • credit counseling deception and dishonesty
  • both of the above

According to the Uniform Debt Management Services Act, all credit counseling agencies must submit to the state government:

  • proof of non-profit status (if applicable)
  • salary information of the five highest paid employees
  • both of the above

The Uniform Debt Management Services Act safeguards consumer rights. According to the act, all credit counseling agencies must provide their customers with:

  • a list of goods and services offered
  • financial education
  • both of the above

Credit counseling fees are also regulated under the Uniform Debt Management Services Act. According to the act, credit counseling agencies cannot charge more than ___________ in set up fees.

  • 50
  • 100
  • 200

How many non-profit credit counseling agencies lost their tax exempt status after the American Internal Revenue Service reviewed their financial records?

  • 10 percent
  • 25 percent
  • 50 percent

There are several prohibitions under the Uniform Debt Management Services Act. According to the act, what are credit counseling agencies forbidden to do?

  • perform legal services
  • suggest bankruptcy
  • both of the above

Although the Uniform Debt Management Services Act was completed in 2005, only handful of states adopted the act by 2008. How many states adopted the act by 2008?

  • 8 states
  • 18 states
  • 28 states