Major Provisions of 11 Consumer Credit Laws Keown Chapter 6

Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD)

- bans unfair rate increases by banning retroactive rate increases and providing first year protection (prevents unfair fee traps such as late fee traps) -cardholders must opt in to over the limit fees, restrains unfair subprime fees, and limits fees on gift and stored value cards - requires plain sight and plain language disclosures - adds new accountability measures for regulators and provides new protections for college students and young adults - including requirement that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act)

-Created the Consumer Financial Protection Bureau CFPB with purpose of educating consumers,enforcing federal consumer laws, and gathering and analyzing information to lead to better understanding of consumers, financial services, and consumer markets.

Fair Credit Reporting Reform act of 1996 (updated version of the fair credit report act of 1971)

-Requires consumer be provided with name of credit agency supplying a credit report that leads to denial of credit -gives consumer right to know whats in credit report, and challenge incorrect information -requires employers get written permission from employees to review credit -allows consumer to sue credit report if changes are not corrected

Fair Credit Billing Act of 1975

-Sets procedures for correcting billing errors -allows consumer to withold payment on fraudulent transactions -it sets limits on the time some info can be kept in credit file

Fair and Accurate Credit Transactions act of 2003 (FACT ACT)

-allows you to request 1 free copy of credit report each year from big bureaus

Truth in Lending Act of 1968 3

-requires lendors to disclose true cost of credit - explaining all charges, terms, and conditions involved - requires consumer to be provided with the total finance charge and annual percentage rate on loan

Equal Credit Opportunity Act of 1975

Prohibits credit discrimination on the basis of -sex/ maritial status -requires lenders to provide written statement explaining why adverse action was taken

Equal Credit Opportunity Act (amended 1977)

Prohibits discrimination based on - race, national origin, religion, age, or receipt of public assistance

Fair Debt Collection Practices of 1978

Prohibits unfair, abusive, and deceptive practices by debt collectors, and establishes procedure for debt collection

Truth in Lending Act (amended 1982)

Requires installment credit contracts to be written in plain english

Truth in Lending Act (amended 1971)

prohibits lenders from sending unauthorized credit cards and limits cardholders liability to $50 for unauthorized use