7.4 Consumer Credit Legislation

Electronic Fund Transfer(EFT) Act (1976)

An act that explains the rights of consumers during an electron funds transfer(EFT) or rights if a debit card gets stolen. You must report a debit card being stolen as soon as possible; or, you are liable for the transactions.

Credit Repair Organizations Act(1996)

It makes it illegal for groups to make false promises or claims about improving your credit history. The only power these companies have is to get copies of your credit report and write your creditors. They have no more power than the consumers. Also, this law requires that a written contract is written between companies offering credit repair and the consumer.

Fair Debt Collection Practices Act(1978)

This act prohibits debt collectors from engaging in unfair, deceptive, or abusive practices when collecting debts. Collectors must send a written notice of amount you owe and the name of the business owed. Bill collectors cannot call you if you dispute the bill in writing within 30 days unless they provide proof that you owe the bill. Also, collectors must identify themselves on the call and can only call between 8am and 9pm. Also, they cannot call you at work if you tell them not to call.

Fair Credit and Charge Card Disclosure Act(1989)

This act requires credit cards to include information on the card's key features and costs, including the APR, grace period, minimum finance charge, balance calculation , method, annual fees, transaction fees for cash advances, and penalty fees such as over-the-limit fees and late-payment fees. Also, card issuers must inform customers if they make certain changes in rates or coverage for credit insurance.

Consumer Credit Reporting Reform Act(1996)

This law amends the Fair Credit Reporting Act. It requires free credit report for certain people(unemployed persons, persons on public assistance, and fraud victims). It clarifies when the 7 year reporting period for negative information begins.

Fair Credit Billing Act(1975)

a law that covers problems with credit card billings on open-end credit accounts such as credit cards. You are required to notify the creditor. The creditor must contact you within 30 days that your notice was received and then investigate the potential error.

Equal Credit Opportunity Act(1975)

a law that ensures that all individuals have an equal opportunity to receive credit or loans. It prohibits discrimination based upon sex, race, marital status, religion, national origin, age, or receipt of public assistance. Lenders cannot ask about your plans for having children or refuse to consider alimony or child support payments as income. It also states that you have a legal right to know why you are denied credit.

Fair Credit Reporting Act(1971)

a law that outlines your rights with credit reporting agencies. It limits who has access to your credit file; allows you to dispute inaccurate information; allows you to see your credit report; allows you to dispute information on your credit report; and it requires you to be informed about why you were turned down for credit.

Truth in Lending Act(1969)

a law that requires all lenders to inform potential borrowers about the cost of borrowing money, including finance charges and the annual percentage rate(APR). Finance charges and APR must be on all forms that the borrower charges.

Consumer Credit Protection Act(1968)

a law that requires that all lenders show the annual percentage rate and the potential costs associated with receiving a loan to the borrower

Consumer Leasing Act(1976)

requires lessors(people that lease something to another person) to provide uniform information about consumer leases. It applies to leases for personal property under $25,000 and or more than four months. A long-term automobile lease is the most common type of lease covered by the act.