CONSUMER CREDIT LEGISLATION Carl Johnson Financial Literacy Jenks High School

Terms to Know  Consumer credit legislation – Any law that is designed to protect consumers, especially by assuring that consumers have access to accurate information about products and services related to financial transactions.

When It All Started…  The commitment to consumer legislation began when Congress passed the Consumer Credit Protection Act of 1968  The purpose of consumer credit legislation is protecting your rights as a consumer, and they cover a wide range of topics such as privacy rights, unfair business practices, fraud, misrepresentation and other consumer/business interactions

Enforcement  Most federal legislation is enforced by the U.S. Department of Justice or the Federal Trade Commission  In the state of Oklahoma, most consumer credit laws are enforced by the Oklahoma Department of Consumer Credit and the State Attorney General’s Office

Consumer Credit Legislation  Here are some of the most important legislative acts regarding consumer credit in chronological order  Truth in Lending Act (1969) – Requires all lenders to inform borrowers about the costs of borrowing money, including finance charges and APR. Also protects you if someone else uses your card without permission. If lost or stolen, and you report it to credit card company, the most you have to pay is $50  Fair Credit Reporting Act (1971) – Outlines your rights with credit reporting agencies; Sets limits on who has access to your credit file and gives you the right to know what is contained in your credit file. It also allows you to dispute inaccurate information in your file

Consumer Credit Legislation  Fair Credit Billing Act (1975) – Covers problems with credit card billings on open ended accounts such as credit cards. You must notify creditor of any errors within 60 days of receiving bill with an error, and creditor must contact you within 30 days after your notice was received and then investigate. Creditor cannot take any steps to damage your credit while dispute is pending  Equal Credit Opportunity Act (1975) – Ensures that all individuals have an equal opportunity to receive credit or loans by prohibiting discrimination. It also says that you have the legal right to know why you are denied credit

Consumer Credit Legislation  Consumer Leasing Act (1976) – Requires lessors to provide you with uniform information about consumer leases, and applies to personal property under $25K and for more than 4 months (ex. – long term auto lease)  Electronic Funds Transfer (EFT) Act (1976) – Explains your rights when mistakes are made with an ATM transaction or if your ATM card is lost or stolen. If notify immediately, you will not be charged for someone else’s use of your card. If you delay, you can be liable for $500 or an unlimited amount if you do not report for more than 60 days

Consumer Credit Legislation  Fair Debt Collection Practices Act (1978) – Prohibits debt collectors from engaging in unfair, deceptive, or abusive practices when collecting debt. Among the provisions are that collectors must send written notice with the amount of money owed and the name of the business owed. Collectors must also identify themselves on the phone and can only call between 8 am and 9 pm, and cannot call you at work if you ask them not to  Fair Credit and Charge Card Disclosure Act (1989) – As a part of the Truth in Lending Act, it requires that all credit card applications require information on the card’s key features (APR, grace period, minimum finance charge, balance calculation method, annual fees, penalty and late payment fees

Consumer Credit Legislation  Consumer Credit Reporting Reform Act (1996) – An amendment to the Fair Credit Reporting Act that requires free credit reports for the unemployed, people on public assistance and fraud victims  Credit Repair Organizations Act (1996) – Makes it illegal for groups to make false promises or claims about improving your credit history. They have no more power in repairing your credit than you do