Consumer Credit Protection Act


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Consumer Credit Protection Act

The Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq. [1972]) is federal statute designed to protect borrowers of money by mandating complete disclosure of the terms and conditions of finance charges in transactions; by limiting the Garnishment of wages; and by regulating the use of charge accounts.

The Consumer Credit Protection Act was the first general federal Consumer Protection legislation. Title I of this law, known as the truth-in-lending act (15 U.S.C.A. § 1601 et seq. [1968]), requires that the terms in Consumer Credit transactions be fully explained to the prospective debtors. Title VI of the Consumer Credit Protection Act, known as the Fair Credit Reporting Act (15 U.S.C.A. § 1601 et seq. [1978]), applies to businesses that regularly obtain consumer credit information for other businesses. Its purpose is to ensure that consumer reporting activities are conducted in a manner that is fair and equitable to the affected consumer.

Whereas the Consumer Credit Protection Act is federal law, states have also passed many statutes regulating consumer credit. For example, the Uniform Consumer Credit Code (UCCC) is an initiative that was drafted by the National Conference of Commissioners on Uniform State Laws in 1968 to help provide consistency among the variety of consumer credit laws that exist throughout state jurisdictions. The purpose of the UCCC is threefold: to protect consumers obtaining credit to finance transactions; to ensure that adequate credit is provided; and to generally govern the credit industry. As of 2003, the UCCC had been adopted in only seven states and Guam. Many states, however, continue to enact legislation that would provide consumer debtors similar protections contained in the provisions of the UCCC.

References in periodicals archive ?
The Court's judgment follows ASIC's announcement of a package of actions against ANZ for contraventions of various responsible lending provisions of the National Consumer Credit Protection Act.
By inserting a new provision in the National Consumer Credit Protection Act 2009 (Cth), ASIC proposes to ban benefits in relation to credit contracts that are determined by reference to the annual percentage rate or fees and charges payable under the contract, and where the interest rate or the fees and charges have been 'determined, proposed or influenced' by the service provider.
In a bulletin on the matter released on March 21, the CFPB said the Equal Credit Opportunity Act makes it illegal for a creditor to discriminate in any aspect of a credit transaction because of race, color, religion, national origin, sex, marital status, age, receipt of income from any public assistance program or the exercise, in good faith, of a right under the Consumer Credit Protection Act.
Even if proper waiver is made, the disposable earnings permitted to be garnished are limited by the Federal Consumer Credit Protection Act described below.
For example, the Federal Consumer Credit Protection Act prohibits an employer from firing or discriminating against a client involved in a Chapter 13 bankruptcy whose wages are garnished.
The regulation implements provisions of the 1968 Consumer Credit Protection Act, more popularly referred to as the "Truth in Lending" law.
The council advises the Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services.
These include, among others, the Fair Labor Standards Act, Occupational Safety and Health Act, Consumer Credit Protection Act, Employee Polygraph Protection Act, Immigration and Nationality Act, and Uniformed Services Employment and Reemployment Rights Act.
The CAC advises the Board about how to address its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services.
The CROA is a sub-chapter of the Consumer Credit Protection Act.
The Consumer Credit Protection Act of 1973 prohibits employers from firing workers whose earnings have been subjected to a wage garnishment arising from a single debt," says labor lawyer Sack.
ASIC commenced proceedings in the Federal Court against Financial Circle on 15 December 2017 alleging breaches of the Corporations Act 2001, the National Consumer Credit Protection Act 2009 and the Australian Securities and Investments Commission Act 2001, including breaches of the best interests duty and unlicensed conduct.

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