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.
:
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:
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:
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:
