Chapter 4, Problem 20AA

Solution

To Explain : Responsibilities as a borrower are to be explained.

Some of the responsibilities of the borrower are:

1. When a person use credit, it comes with the responsibilities. If a person does not pay their debt on time then the lender hire the recovery or collection agency to recover their funds. If a person would fail to pay the funds then the lender has to take the loss and that loss will be recover in the form of high interest rates that will be charged to all the consumers. The person's credit history will get affected and they will find it difficult to get credit in future.

2. Person has to keep the record of all the charges they had paid. Person should intimate the credit card issuer instantly in case the card is lost or stolen.