Credit Cards
Your Credit Rights
The Truth In Lending Act (enacted 1968)
Ensures consumers are fully informed about cost and conditions of borrowing. Sets
standards for disclosing interest rates and fees.
The Fair Credit Reporting Act (enacted 1970)
Protects the privacy and accuracy of the information in your credit reports.
The Equal Opportunity Act (enacted 1974)
Prohibits discrimination in giving credit on the basis of sex, race, color, religion,
national origin, marital status, age, or receipt of public assistance.
The Fair Credit Billing Act (enacted 1974)
Sets up a procedure for the quick correction of mistakes that appear on consumer
credit accounts.
The Fair Debt Collection Practices Act (enacted 1977)
Prevents abuse by professional debt collectors, and applies to anyone employed to
collect debts owed to others. This act does not apply to banks or other businesses
collecting their own accounts.
Types & Sources of Credit:
Single-payment credit
This is when items and services are paid for in one payment, within a agreed upon
time period. Interest is usually not charged.
Examples:
- Utility companies
- Medical services
- Some retail businesses
Installment credit
This is when merchandise and services are paid for in two or more regularly scheduled
payments of a set amount. The interest is included. Money may also be loaned for
a special purpose, with the consumer agreeing to repay the debt in two or more regularly
scheduled payments.
Examples:
- Some retail businesses, such as car and appliance dealers
- Commercial banks
- Consumer finance companies
- Savings and loans
- Credit unions
Revolving credit
This is when repayment is made in regular time intervals for any amount at or above
the minimum required amount. Interest is charged on the remaining balance. Many
goods and services can be bought using revolving credit as long as the total amount
does not go over the consumer's credit limit.
Examples:
- Retail stores
- Gas stations
- Financial institutions that issue credit cards
