Consumer Handbook To
Credit Protection Laws:
Truth In Lending
Introduction
The Consumer Credit Protection Act of
1968—which launched Truth in Lending disclosures — 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 are, compare costs, and shop around for the best credit deal.
Since 1968, credit protections have
multiplied rapidly. The concepts of "fair" and "equal" credit have been written
into laws that bar 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 about 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 denied 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 resolve errors in your
monthly bill without damage to your credit rating; and
— that you cannot have credit shut off
just because you've reached the age of 62.
But, let the buyer be aware! It
is important to know your rights 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, details what creditors
look for before extending credit, and reviews the laws' solutions to
discriminatory practices that have made it difficult for women and minorities
to get credit.
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