1. Gov’t Regulations of Credit *Usury Laws-- -state laws
-limit on interest rates
pro-some can’t afford high interest
con-banks won’t loan if they can’t
make money

2. **Federal Laws** 1. Truth in Lending Act -ensures consumer is fully
informed of costs & conditions.
-gives a cooling off period.
-says consumer liable only for
first $50 on stolen credit card.

3. 2. Fair Credit Reporting -protects privacy and accuracy
of credit check information.
-removes outdated info
-consumer can get name of
credit bureau and a summary
of report.

4. 3. Equal Credit Opportunity
Act
-prohibits discrimination
-all terms same for everyone
-only questions related to
ability to pay.
-reasons must be given for
denial

5. 4. Fair Credit Billing Act -procedures for correcting
billing mistakes.
-can withold payment while
bill is being checked.
-must be given a statement
of rights.

6. 5. Fair Debt Collection Practices Act -prevents abuse by collection
agencies
-applies to those collecting for
others
-can only ask location
-no harassment

7. 6. Credit CARD Act (2009)
-limited interest rate hikes
-customer must be given 45 days notice before
changes made to credit card account.
-bans credit card companies from giving cards
to people under 21.
-bans credit card companies from campuses if
giving away free items.
-can opt out of changes and close account
-bans retroactive fee increases

8. 8. Title III of the Consumer Protection Act
-limits the amount that can be garnished from a
paycheck.
-garnishment-court order in which debts are
taken out of your check before you receive it.
-says you cannot be fired for one garnishment.
-does not apply to:
Child Support
Taxes

9. *Bankruptcy
-giving most of what you own to be distributed to creditors. (Chapter 7) or
-restructuring your debts so you can pay
them. (Chapter 13)
-can ruin your credit for 10 years
-creditors don’t get their money
-moral/religious issue for some.