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.