YourCredit.com compiled a comprehensive collection of Federal and State Laws for reference use. This information is not a substitute for legal counseling or advice.
The Consumer Leasing Act specifies requirements for disclosures relating to
consumer leasing and requires that lease terms advertised actually be
available. The statue also requires advertisers of consumer leases to clearly
and conspicuously provide certain information if those advertisers use
specific trigger terms in their lease ads.
Drivers Privacy Protection Act
Driver's Privacy Protection Act is the federal law that regulates the
release of motor vehicle records and how recipients of such records share
them. DPPA limits the realease of personal information such as social
security number, driver identification number, name, address, telephone
number, medical or disability information except for limited permissible
uses. With some exceptions, The Drivers' Privacy Protection Act prohibits
public access to information in state motor vehicle registration records and
driver's license records. It also requires the state agency to tell the
person whose information is being requested about the request and get their
permission to turn the information over.
Equal Credit Opportunity Act
The Equal Credit Opportunity Act prohibits discrimination against an applicant
for credit because of age, sex, marital status, religion, race, color, national
origin, or receipt of public assistance. It also prohibits discrimination
because of a good faith exercise of any rights under the federal consumer credit
laws. If a consumer has been denied credit, the law requires notification of
the denial in writing. The consumer may request, within 60 days, that the
reason for denial be provided in writing.
Equal Credit Opportunity Act Amendments (1996)
Amendments to the Equal Credit Opportunity Act was signed into law as part
of the Economic Growth and Regulatory Paperwork Reduction Act of 1996. The
Act creates a legal privilege for creditors through voluntary "self–tests"
that are conducted to determine the level of effective compliance with the
Equal Credit Opportunity Act, if the creditor takes appropriate corrective
action to address possible violations identified by the self–tests.
Fair Credit and Charge Card Disclosure Act
The Fair Credit and Charge Card Disclosure Act requires new disclosures on
credit and charge cards regardless of the issuing institution. Card issuers
must provide, in tabular form, information such as APRs, annual fees, and
grace periods, along with the application and solicitation. This law also
requires card issuers to inform customers of annual fees before renewal and
any increase in rate associated with credit insurance.
Fair Credit Billing Act
The Fair Credit Billing Act establishes procedures for the prompt correction of
errors on open–end credit accounts. It also protects a consumer's credit rating
while the consumer is settling a dispute.
Fair Credit Reporting Act
The Fair Credit Reporting Act establishes procedures for correcting mistakes on
an individual's credit record and requires that a consumer's record only be provided
for legitimate business needs. It also requires that the record be kept
confidential. A credit record may be retained seven years for judgments, liens,
suits and other adverse information except for bankruptcies, which may be
retained ten years. If a consumer has been denied credit, a free credit report
may be requested within 30 days of denial.
Fair Credit Reporting Act Amendments (1996)
The Fair Credit Reporting Act was recently amended to strengthen privacy
provisions and define more clearly the responsibilities and liabilities of
businesses that provide information to–and access data from–credit reporting
agencies. The Fair Credit Reporting Act (FCRA). Amendments to the
Act–effective September 30, 1997––require employers, or prospective employers,
to obtain an applicant's written consent prior to obtaining credit
information, background, and medical information regarding an applicant.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act describes what debt collectors may and
may not do if you owe money. It applies to third party debt collectors
(i.e., collection agencies), or those who use a name other than their own in
collecting consumer debts. Very few commercial banks, savings banks, savings
and loan associations, or credit unions are covered by this Act, since they
usually collect only their own debts. Complaints concerning debt collection
practices, such as harrassment or abuse, should generally be filed with the
Federal Trade Commission.
Credit Practices Rule
The Credit Practices Rule applies to consumer credit contracts offered by
finance companies, retailers and credit unions for any personal purpose
except for buying real estate. The Credit Practice Rule prohibits lenders
from using certain remedies, such as confessions of judgement, wage
assignments and security interests in household goods. Under the Rule, it
is illegal for a creditor to charge you late fees or payments simply because
you have not yet paid a late fee you owe, or to pyramid late fees.
Home Equity Loan Consumer Protection Act
The Home Equity Consumer Protection Act requires lenders to disclose terms,
rates and conditions for home equity credit with applications and before the
first transaction under the home equity plan. The Act also limits the
circumstances under which creditors may terminate or change the terms of a
home equity plan after it is opened. If the disclosed terms change, the
consumer can refuse to open the plan and is entitled to a refund of fees paid
in connection with the application.
Home Mortgage Disclosure Act
The Home Mortgage Disclosure Act requires certain lending institutions to
report annually their originations and purchases of home purchases and home
improvement loans as well as application for such loans. Institutions are
required to make information regarding their lending available to the public
and must post a notice of availability in their public lobby. The type of loan,
location of the property, race or national origin, sex, and income of the applicant
or borrower is reported. This information is used to help the public determine how
well institutions are serving the housing credit needs of their neighborhoods and
communities.
Truth In Lending Act
The Truth in Lending Act, Title I of the Consumer Credit Protection Act,
is intended to promote the informed use of credit and encourage consumers
to compare the cost of a cash versus credit transaction and shop for the
lowest cost in consumer credit transactions, including home mortgages.
TILA also establishes disclosure standards for advertisements that refer
to certain credit terms. The Truth in Lending Act requires credit grantors
to give you written disclosure of the cost of credit and the terms of repayment
before you enter into a credit transaction. TILA's most important feature is
the requirement for credit grantors to disclose both dollar amount and annual
percentage rate of a transaction.
Truth In Lending Act Amendments
(a.k.a. Truth In Lending)
Truth in Lending Act Amendments of 1995 amends the Truth in Lending Act
(TILA) to exclude from the determination of finance charge for any consumer
credit transaction fees imposed by third party closing agents, including
settlement agents, attorneys, escrow and title companies, that are neither
required nor retained by the creditor (thereby exempting such fees from TILA
disclosure requirements). The TILA amendment modifies the determination of
finance charge to include borrower–paid mortgage broker fees and identifies
circumstances under which a consumer has a right to rescind a consumer
credit transaction after the initiation of any judicial or nonjudicial
foreclosure process on the consumer's primary dwelling securing the debt.
Bankruptcy Reform Act 1994
The Bankruptcy Reform Act is also known as the Bankruptcy Code and
replaces the Bankruptcy Act of 1898. Different types of bankruptcy
are named after chapters in the Bankruptcy Code. The most common types
of bankruptcy are Chapter 7, Chapter 11, and Chapter 13.
Bankruptcy Reform Act 1998
The Bankruptcy Reform Act of 1998 amends Federal bankruptcy code to
prescribe guidelines for a needs–based bankruptcy system which precludes
individuals from filing for complete relief in bankruptcy under chapter 7
(Liquidation), if certain current monthly income is available to pay
creditors. The Act sets forth a formula for income levels to determine
debtor eligibility for bankruptcy relief. Any individual (or in a joint
case, individual and spouse combined) with: (1) current monthly total income
of not less than the highest national median household income; (2) a
projected monthly income of greater than $50; and (3) projected monthly net
income sufficient to pay 20 percent or more of unsecured non–priority claims
during a five year–repayment plan are considered to be eligible for chapter
13.
Real Estate Settlement Procedures Act
Real Estate Settlement Procedures Act requires lenders to provide the booklet to each
person from whom it receives an application to borrow money to finance the purchase of
residential real estate. RESPA also prescribes limits on the amounts a lender, in
connection with a federally related mortgage loan, require the borrower or prospective
borrower to deposit in any escrow account which may be for the purpose of assuring payment
of taxes and insurance premiums with respect to the property.
Right to Financial Privacy Act
Right to Financial Privacy Act provides that customers of financial institutions
have a right to expect their financial activities will have reasonable amount of
privacy from federal government scrutiny. The Act establishes procedures and
exemptions concerning the release of financial records and imposes requirements
on financial institutions prior to release of such information.
Many state laws also provide rights and remedies in consumer financial
transactions. Unless a state law conflicts with a particular federal law, the
state law usually will apply. Some states have usury laws, which establish
maximum rates of interest that creditors can charge for loans or credit sales.
The maximum interest rates vary from state to state and depend upon the type of
credit transaction involved.
