The main provisions of the Law of Consumer Credit Protection found within the Law of Truth in Lending Act (TILA), which requires fully owned bank loan terms offered. The lender must provide a written description in a clear and easily understood, giving the following information:
* The amount of the loan or line of credit
* The interest rate or APR (annual rate) as an expression of the total costborrowing money (in the sense that there should be no hidden costs offset an artificially low interest rate)
* The method used to calculate the monthly finance charge (interest payments)
* The total cost of all payments (ie for a specific amount of loans, no credit)
* All other terms and conditions of the loan, including the payment due date, late fees and penalties for early repayment
In addition to demand transparency from lenders onterms of the loans, the AP also imposes significant restrictions on seizure of wages. wage garnishment is a legal process by which the earnings of a person is withheld from your salary for a part to pay a debt. garnishee wages can be ordered by a court when a person has to pay (no pay) the loan. The PA provides that an employer can not fire an employee because his wages are garnished by one (the employer may dismissif the employee is adorned with his salary for a debt). It also established a legal limit on the amount (which in part) of an individual wages may be withheld from your salary each. Usually no more than 25 percent of the salary of a person can be arrested.
The Fair Credit Reporting Act (FCRA) was added to the AFCA in 1971. It was the first federal regulation to address the credit reporting industry. (Communication Services, also called consumer information organizations orCredit bureaus are companies that collect information and compile the history of consumer credit. The three major national credit bureaus are Equifax, Experian and TransUnion). The FCRA is to ensure the accuracy, privacy and accuracy of the consumer credit practices. De protections contained in the FCRA applies to organizations that sell consumer information about medical history of people (often used by insurance companies to decide whether to extend health insurance toindividuals) and the rent records (used by the future owners.) In accordance with its provisions:
* You have the right to see information in your credit report. Traditionally there was a charge for access to the report, but recent changes allow people to request a free credit report once a year for each credit agencies nationwide.
* The consumer must be notified if information in your credit report has been used to deny that he or shecredit.
* You have the right to challenge any inaccuracies in the report of his agency and the model is required to investigate any case unless they are deemed frivolous or unfounded.
* The credit reporting agencies are required to correct or delete all information about a consumer that is inaccurate, incomplete or unverifiable information.
* The credit bureaus are not allowed to report negative information that is out of date (more than seven yearsold).
* The credit reporting agencies credit report can only give people a person with a valid need to see it as a potential lender, landlord, insurer or employer. In addition, an individual reporting agency must give written consent to disclose your credit report to your employer or potential employer.
Another amendment to the PDB, the Equal Credit Opportunity Act, which was added in 1976, prohibits discrimination against credit providersapplicants on the basis of sex, race, age, marital status, religion or national origin. Implemented in 1978, the Fair Debt Collection Practices Act (FDCPA) prohibits unfair deceptive and unfair debt - collection tactics such as threats, telephone calls, intrusive and persistent, and other types of harassment.
The PA is designed to protect individual consumers. Its larger purpose, however, is to maintain consumer confidencethe financial system and thereby promote a robust economy. If consumers fear being defrauded by lenders, or have no access or control, the information contained in their credit histories, their loss of confidence can make to avoid banks altogether. The widespread loss of consumer confidence could lead to a major disruption in the economy, government institutions, financial companies and consumers have ainterest in avoiding.
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