Consumer Credit: Chapter 18-4
A credit counselor
discusses and suggests actions to take to reduce spending and eliminate debit difficulties.
The Credit Card Accountability Responsibility and Disclosure Act of 2009 was designed to
establish fair and transparent credit card practices.
The law protects the consumer if you have made a ______________ effort to work with the business.
good faith
The Fair Credit Reporting Act
is the law that gives consumers the right to know what information credit bureaus are giving to potential creditors, employers, and insurers.
The credit bureaus must delete any information if it is
more than 7 years old.
Under this law, the creditor
must certify that disputed data is accurate.
Consumer Credit Reporting Reform Act
places the burden of proof for accurate credit information on the credit reporting agency rather than on you.
The Equal Credit Opportunity Act
prohibits creditors from denying a person a person credit because of age, race, sex, or marital status.
The Fair Credit Billing Act requires
prompt correction of billing mistakes.
The Fair Credit Reporting Act also requires
that credit bureaus must delete any information dealing with a personal baking that us more than 10 years old.
Truth-In-Lending requires
that you be told the cost of credit before signing an agreement.
This law provides that if credit is denied based on information in a credit report
the application must be given the name, address, and phone number of the credit bureau that provided the information.
A debt collection agency attempts
to obtain money that is past due.
The Truth-In-Lending law also protects consumers against
unauthorized use of credit cards.
The CARD keeps credit card companies form
charging fees and interest rates without cardholder approved.
And its purpose is to
consumers are wanted to be cautious of for-profit credit counseling services.
The law limits your liability to
$50 for unauthorized credit card purchases made prior to notifying the card issuer.
This allows
a credit history to be developed for each spouse.
If a person cannot pay off his or her bills when they are due the may take the following actions:
1. Contact creditors and explain the situation. 2. Make a realistic proposal for when and what you can pay. 3. Keep and promises you make. 4. Make a written copy of you agreement to avoid problems later.
3 Credit Bureaus
1. Equifax 2. Experian 3. TransUnion
The CCCS stands for
Consumer Credit Counseling Service
Who does the CARD Act also protect?
People under 21, college students, and other vulnerable consumer.
A debt repayment plan is
an agreement to reduce payments to a more manageable level and still pay off the debtor.
Credit records for both husband and wife
are kept if both are responsible for the debt.
The final option when facing credit problems would be to file for _____________, which is the __________________________________________.
bankruptcy, legal process of reducing or eliminating an amount owed.
The ____________________________ was the first series of credit protection laws.
Truth-In-Lending Act
How can consumers avoid bankruptcy?
Using credit wisely and practicing sensible money management.
