Which of the following describes an FDCPA prohibition related to threats or misrepresentations?

• A. Threatening legal action that is not actually intended or pursueable is prohibited.
• B. Threatening legal action that is actually pursued is prohibited.
• C. Misrepresenting the debt by altering the amount is prohibited.
• D. Threatening to sue if payment is not made within 24 hours is prohibited.

Answer: (A)

The main idea being tested is that debt collectors may not threaten action they have no real intention of taking or cannot legally take. The most fitting description is that threatening legal action when it isn’t actually intended or pursuable is prohibited. This prevents collectors from bluffing about lawsuits to intimidate a consumer and pressure payment.

Think of it this way: if a collector claims a lawsuit will be filed or a legal remedy will be pursued, but they have no real plan or basis to actually carry that out, that deception is not allowed under the FDCPA.

While misrepresenting the debt amount is also prohibited, that describes misstatements about the debt rather than a threat about legal action. And threats to sue aren’t automatically illegal just for being a threat; they become a problem when there’s no true intent or legal ability to follow through.