Personal Finance

Affinity Card

•A credit card issued in conjunction with a specific charity or organization and many colleges and universities. •Mother Against Drunk Driving •Negative: expensive cards

Truth in Lending Act

•Act of 1968: requires lenders to disclose the true cost of consumer credit (you have to be told the cost of credit) •Act of 1971: prohibits lenders from unauthorized credit cards and limits cardholder's liability to $50 for unauthorized use. (can't just mail out credit cards to people unless they've applied for one) •Act of 1982: requires installment credit contracts to be written in plain English •Consumers couldn't compare interest rates and loan costs and scam and fraud were constantly happening. Card holders would take advantage of consumers

Dodd Frank Wall Street Reform and Consumer Protection Alert

•Consumers were making risky choices and taking dangerous loans, didn't understand what they were getting •Goal was to educate consumers, enforce federal consumer laws, and to gather and analyze •Require mortgage lenders to determine whether someone can afford a loan and has the ability to repay a loan by checking their income •Tried to be more fair with consumers •Put more emphasis on being more up front with consumers on mortgages

The Credit Card Accountability Responsibility and Disclosure Act

•Credit card companies could raise customer's interest rates including those existing balances without permission •Congress saw that credit card industries were taking advantage of consumers •Passed in 2010 •Prevents unfair rate increases, gives first year protection, prevents unfair fees, discloses rates and fees, protects college students and adults

FACT Act

•Helps notify you if there is a change in your credit report •Allows you to see a free report once a year One free credit report a year from big 3

Identity Theft

•How? o Dumpster diving through people's trash and finding important personal information o Hacking into personal computers (pretending to be a reputable company) o Pose as someone people wouldn't question (landlord, employer) o ATM (attach a thing that can capture the pin number and card number) •Prevention: o Shred all important personal information o Banks will NOT ask you to tell them you're account number or social security number o Check your credit reports o Keep important personal documents in a safety deposit box o Only provide information to people you trust or sites you know are reputable o Photo copy both sides of your credit cards and keep in safety deposit box o Be aware of the people around you when you're using your cards

Credit Card Fraud

•Misuse of a card •Liability for each cold lost or stolen is $50 •Check your balances more than one time a day •Don't check your stuff on your phone

Fair Debt Collections Practices Act

•Prohibits debt collectors from using abusive, unfair, or deceptive practices to collect information from you •How debts can be collected and how they can't be •8 am to 9pm is the time frame they can contact you •When they are collecting debt, if they are repossessing something from you that is tangible (car) and you tell them to stop, they have to stop (has to be "peaceful")

Equal Credit Opportunity Act of 1977

•Prohibits discrimination based on race, national origin, religion, age or receipt of public, assistance when applying for credit •Forbids creditors from asking detailed personal information (asking about marital status/information about an applicant's spouse) •Forbids creditors from considering oYour race, age, sex, national origin, etc. oIf you have a telephone account in your name

Fair Credit Billing Act (FCBA)

•Set procedures for correcting billing errors with credit cards •Sets limit on the time some information can be kept in your credit file •Allows consumers to withhold payment for defective goods purchased with that credit card and not be charged interest for not paying that off •It allows you the right to contest errors on a credit card bill •Protects you from unauthorized charges •Don't have to pay while you're disputing •If something is wrong you have 60 days from when the bill is mailed to contact with your dispute •They have to answer within in 30 days •Claim has to be fixed within 90 days

Fair Credit Reporting Reform Act

•To give consumers more rights to their credit report •You must be told if information in your file has been used against you •Have the right to know what's in your file •Have the right to ask for your credit score •Have the right to despite incomplete or inaccurate information •Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverified information within 30 days. •CRA's may not report outdated negative information (bankruptcy after 10 years) •Access to your file is limited •You must give your consent for reports to be provided for employers

Consumer Financial Protection Bureau

•To make markets for consumer financial products and services work for Americans oApplying for a mortgage, choosing credit cards, etc.) •A federal agency that governs making sure institutions are putting the right stuff out for the consumers to use financially •Makes sure nothing illegal is happening •Supervise banks, credit unions, and other financial companies. •Deals with education