Regulations and Requirements - Consumer Protection Laws (Contd.)

Fair credit reporting laws

  1. Fair Credit Reporting Act
    First enacted in 1971, it gives consumers the right to see their credit reports and challenge incorrect information. It also requires consumers be provided name of any credit agency supplying a credit report that leads to the denial of credit. It allows consumers to sue creditors if reporting errors are not corrected and requires employers to obtain an employee's or prospective employee's permission to view a credit report.
    • Fair and Accurate Credit Transactions Act - A 2003 amendment to the Fair Credit Reporting Act that requires the three major credit reporting agencies to provide consumers with a free copy of their credit reports every 12 months.
  2. Truth in Lending Act
    Also known as the Consumer Credit Protection Act, it stipulates that lenders must disclose to borrowers the trust cost of loans and make the interest rate and terms of the loan easy to understand. It requires that the consumer be provided with the total finance charge and annual percentage rate on the loan.
  3. Fair Credit Billing Act
    It establishes procedures for resolving billing errors on credit card accounts and limits a consumer's liability for fraudulent credit card charges to $50.
  4. Equal Credit Opportunity Act
    This law, first enacted in 1975, prohibits credit discrimination on the basis of sex, marital status, race, national origin, religion, age or receipt of public assistance.
  5. Fair Debt Collection Practices Act
    It prohibits unfair, abusive and deceptive practices by debt collectors and establishes procedures for debt collection.

Privacy policies

Gramm-Leach-Bliley Act
A wide-ranging law affecting the financial services industry, its provisions include measures to protect the personal financial information held by financial institutions. There are three components to the privacy requirements:
  • Fair and Accurate Credit Transactions Act - A 2003 amendment to the Fair Credit Reporting Act that requires the three major credit reporting agencies to provide consumers with a free copy of their credit reports every 12 months.
Consumer protection laws: Identity Theft Protection


Related Articles
  1. Credit & Loans

    6 Ways To Build Credit Without A Credit Card

    It's definitely possible – if a bit more complicated – to build a credit history without traditional credit cards. Just follow these steps.
  2. Credit & Loans

    How To Increase Your Appeal To Prospective Lenders

    Making a business eligible for loans/credit cards at the best possible rates requires crafting an excellent credit profile through the smart use of credit.
  3. Credit & Loans

    What's On A Consumer Credit Report?

    A look at the various components and considerations that go into one's credit report and credit score.
  4. Credit & Loans

    Check Your Credit Report

    Make sure there are no errors holding you back from obtaining a loan.
  5. Credit & Loans

    Time to Accept Credit Card Offers Again?

    How much you could get and whether to respond
  6. Credit & Loans

    Best Credit Cards For People With Poor Credit Scores

    There are still ways you can build credit with a credit card, even if you have bad credit.
  7. Mutual Funds & ETFs

    Investing In Credit Card Companies

    This investment requires keeping an eye on consumer indexes and the overall health of the economy.
  8. Options & Futures

    How To Establish A Credit History

    Can't get a credit card without a credit history, and can't get a history without a card? Break the Catch-22.
  9. Credit & Loans

    The Basics Of Lines Of Credit

    Lines of credit are potentially useful hybrids of credit cards and normal loans. Learn how a line of credit can help (and hurt) your finances, and how to find the best one to suit your needs. ...
  10. Credit & Loans

    Business Vs. Consumer Credit Reports: What's the Difference?

    Find out the difference between a business credit report and a personal credit report, and why it should matter for business owners.
RELATED TERMS
  1. Consumer Advisory Council - CAC

    A legislative body established by Congress in 1976. The Consumer ...
  2. Credit Rating

    An assessment of the creditworthiness of a borrower in general ...
  3. Credit Limit

    The amount of credit that a financial institution extends to ...
  4. Credit Agency

    A for-profit company that collects information about individuals' ...
  5. Trade Credit

    An agreement where a customer can purchase goods on account (without ...
  6. Credit Watch

    A variety of special programs offered by credit rating agencies ...
RELATED FAQS
  1. What's the difference between a credit bureau and a credit rating agency?

    Learn the differences between credit bureaus that report on individuals' creditworthiness and credit rating agencies that ... Read Answer >>
  2. Is it possible to have a credit limit that's too high?

    Avoid these pitfalls when working with high credit limits, and learn how to increase your credit score by increasing your ... Read Answer >>
  3. What's the difference between credit score and credit history?

    Check out the differences between credit score and credit history, and learn how your credit history is used to create your ... Read Answer >>
  4. What are some good alternatives to taking out a line of credit?

    Read more about how opening a line of credit might not be the best answer for you and determine available alternatives if ... Read Answer >>
  5. How can I improve my credit score?

    If you are looking to take out a loan or apply for a credit card, then it will be very important for you to have a good credit ... Read Answer >>
  6. How do I get my free credit report and score from each credit bureau?

    Learn how to obtain copies of your credit report for free from the three credit bureaus and where you might find your credit ... Read Answer >>
Hot Definitions
  1. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  2. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  5. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center