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 ?
As a result, ASIC alleges NAB breached s31(1) of the National Consumer Credit Protection Act 2009 (National Credit Act) which prohibits credit licensees from conducting business with parties engaging in credit activity without an Australian credit licence (ACL).
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.
The study guide's many multiple-choice and short-answer questions, detailed and explained answers, model essay answers, and a practice exam will helps students test their knowledge of the law related to various forms of payment, especially Articles 3, 4, 4A, and 5 of the Uniform Commercial Code; selected provisions of the Consumer Credit Protection Act; and a few federal regulations.
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.
Florida follows the Federal Consumer Credit Protection Act, which places a cap on the maximum part of the aggregate disposable earnings of an individual for any workweek subject to garnishment and holds that such garnishment may not exceed the lesser of: 1) 25% of the disposable earnings for that week, or 2) the amount of disposable earnings which exceeds thirty times the Federal minimum hourly wage.
(33.) See CHRIS DODD, AMENDING THE CONSUMER CREDIT PROTECTION ACT, TO BAN ABUSIVE CREDIT PRACTICES, ENHANCE CONSUMER DISCLOSURES, PROTECT UNDERAGE CONSUMERS, AND FOR OTHER PURPOSES, S.
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.
The ECOA makes it unlawful for a creditor to discriminate against an applicant in any aspect of a credit transaction on the basis of an applicant's national origin, marital status, religion, sex, color, race, age, receipt of public assistance benefits, or the good faith exercise of a right under the Consumer Credit Protection Act. Technically, the ECOA is implemented by the FRB's Regulation B.
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.

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