Question

Which of the following is an obligation of creditors in the debtor-creditor relationship?

A. To communicate when payment can't be met
B. To pay the loan in full and on time
C. To disclose hidden fees and charges
D. To make threats to collect payment

Answer 1

Answer: A. To communicate when payment can't be met.

Explanation: The creditor has the right to collect payment on amounts that are due. If the debtor defaults on the debt then the creditor has several options: Attempt to collect the debt from the debtor. Attempt to collect collateral from the debtor or guarantor.