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Published byひさとも はしかわ Modified over 5 years ago
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Gov’t Regulations of Credit *Usury Laws-- -state laws
-limit on interest rates pro-some can’t afford high interest con-banks won’t loan if they can’t make money
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**Federal Laws** 1. Truth in Lending Act -ensures consumer is fully
informed of costs & conditions. -gives a cooling off period. -says consumer liable only for first $50 on stolen credit card.
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2. Fair Credit Reporting -protects privacy and accuracy
of credit check information. -removes outdated info -consumer can get name of credit bureau and a summary of report.
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3. Equal Credit Opportunity
Act -prohibits discrimination -all terms same for everyone -only questions related to ability to pay. -reasons must be given for denial
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4. Fair Credit Billing Act -procedures for correcting
billing mistakes. -can withold payment while bill is being checked. -must be given a statement of rights.
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5. Fair Debt Collection Practices Act -prevents abuse by collection
agencies -applies to those collecting for others -can only ask location -no harassment
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6. Credit CARD Act (2009) -limited interest rate hikes -customer must be given 45 days notice before changes made to credit card account. -bans credit card companies from giving cards to people under 21. -bans credit card companies from campuses if giving away free items. -can opt out of changes and close account -bans retroactive fee increases
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8. Title III of the Consumer Protection Act
-limits the amount that can be garnished from a paycheck. -garnishment-court order in which debts are taken out of your check before you receive it. -says you cannot be fired for one garnishment. -does not apply to: Child Support Taxes
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*Bankruptcy -giving most of what you own to be distributed to creditors. (Chapter 7) or -restructuring your debts so you can pay them. (Chapter 13) -can ruin your credit for 10 years -creditors don’t get their money -moral/religious issue for some.
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