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Consumer Handbook to Credit Protection Laws
Contents
INTRODUCTION
THE COST OF CREDIT
Shopping Is the First Step
What Laws Apply?
The Finance Charge and Annual Percentage Rate (APR)
A Comparison
Cost of Open-end Credit
Leasing Costs and Terms
Open-end Leases and Balloon Payments
Costs of Settlement on a House
APPLYING FOR CREDIT
Discrimination
What Law Applies?
What Creditors Look For
Information the Creditor Can't Use
Special Rules
Discrimination Against Women
If You're Turned Down
CREDIT HISTORIES AND RECORDS
Building Up a Good Record
What Laws Apply?
Credit Histories for Women
Keeping Up Credit Records
OTHER ASPECTS OF USING CREDIT
What Laws Apply?
Billing Errors
Defective Goods or Services
Prompt Credit for Payments and Refunds for Credit Balances
Cancelling a Mortgage
Lost or Stolen Credit Cards
Unsolicited Cards
ELECTRONIC FUND TRANSFERS
Instant Money
EFT in Operation
What Law Applies?
What Record Will I Have of My Transactions?
How Easily Will I Be Able to Correct Errors?
What About Loss or Theft?
What About Solicitations?
Do I Have to Use EFT?
Special Questions About Preauthorized Plans
COMPLAINING ABOUT CREDIT
Complaining to Federal Enforcement Agencies
Penalties Under the Laws
GLOSSARY
SUBJECT INDEX
DIRECTORY OF FEDERAL AGENCIES
FEDERAL RESERVE BANKS
OTHER CONSUMER PAMPHLETS AVAILABLE
INTRODUCTION
The Consumer Credit Protection Act of 1968--which launched
Truth in Lending--was a landmark piece of legislation. For the
first time, creditors had to state the cost of borrowing in a
common language so that you--the customer--could figure out
exactly what the charges would be, compare costs, and shop
around for the credit deal best for you.
Since 1968, credit protections have multiplied rapidly.
The concepts of "fair" and "equal" credit have been written
into laws that outlaw unfair discrimination in credit
transactions; require that consumers be told the reason when
credit is denied; let borrowers find out about their credit
records; and set up a way to settle billing disputes.
Each law was meant to reduce the problems and confusion
surrounding consumer credit which, as it became more widely
used in our economy, also grew more complex. Together, these
laws set a standard for how individuals are to be treated in
their financial dealings.
The laws say, for instance:
-- that you cannot be turned down for a credit card just
because you're a single woman;
-- that you can limit your risk if a credit card is lost or
stolen;
-- that you can straighten out errors in your monthly bill
without damage to your credit rating; and
-- that you won't find credit shut off just because you've
reached the age of 65.
But, let the buyer be aware! It is important to know your
fights and how to use them. This handbook explains how the
consumer credit laws can help you shop for credit, apply for
it, keep up your credit standing, and--if need be--complain
about an unfair deal. It explains what you should look for when
using credit and what creditors look for before extending it.
It also points out the laws' solutions to discriminatory
practices that have made it difficult for women and minorities
to get credit in the past.
THE COST OF CREDIT
Shopping is the First Step
You get credit by promising to pay in the future for
something you receive in the present.
Credit is a convenience. It lets you charge a meal on your
credit card, pay for an appliance on the installment plan, take
out a loan to buy a house, or pay for schooling or vacations.
With credit, you can enjoy your purchase while you're paying
for it--or y
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