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Discussion Week 14

Discussion Week 14

Q Please review the discussion question as posed in Chapter 24, page 480, about car loans. Many people need a car to get to work, take care of their families, live their lives. But obtaining an auto loan can be difficult for those with a bad credit rating. Some finance companies are now willing to extend credit to people who are poor risks, on one condition: The company can install on the car a tracking software with ability to disable the ignition if debtors miss a payment. This practice has left drivers stranded on highways and in dangerous neighborhoods. Is this practice unfair? Do the benefits of obtaining a loan outweigh the harm caused by this violation of privacy and loss of control? Write your discussion post in three paragraphs: in the first paragraph, refer to law and how you would respond as a consumer who needs a car and this condition about your car loan. Write the second paragraph from the standpoint of a business offering credit upon this condition. In the third paragraph write your thoughts about if it is fair, and/or right to offer in the 21st century? Why or why not? You will be awarded 16 points for posting only your discussion and 4 additional points for posting feedback to another student's post.

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From a consumer standpoint, the Federal Trade Commission Act (FTC Act) is one of the laws that protect consumers from unfair and deceptive practices. The unfairness of the auto loan companies could be a ground to argue on behalf of the consumer. This is likely presentable because the consumer’s car is being disengaged at unusual times and situations. It would be dangerous and inconsiderate to disable car ignition on a highway. The loan companies fail to treat the consumer like any other auto loan consumer in the market. Being a high risk debtor is insufficient to put the individuals in a dangerous situation.