preventing abuses in the credit system business law ii chapter 33 debtors, creditors and bankruptcy
TRANSCRIPT
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PREVENTING ABUSESIN THE
CREDIT SYSTEM
Business Law II
Chapter 33Debtors, Creditors and Bankruptcy
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Federal Equal CreditOpportunity Act
• Enacted October 1974
• Creditor may not refuse, on the basis of sex or marital status, to grant a separate account to a creditworthy applicant.
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Federal Equal Credit Opportunity Act—continued
• A creditor may not ask the applicant’s marital status if the applicant applies for an unsecured separate account.
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Federal Equal Credit Opportunity Act—continued
• A creditor may not prohibit a married female applicant from opening or maintaining an account in her maiden name.
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Federal Equal Credit Opportunity Act—continued
• A creditor shall not request information about birth control practices, nor childbearing intentions, nor childbearing capabilities.
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Federal Equal Credit Opportunity Act—continued
• Married persons with joint accounts have the right to have credit information reported in both names to provide credit history for both.
• In the past, upon divorce or upon death of the husband, the wife would often be denied credit because the joint account had been listed in the husband’s name only.
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Federal Equal Credit Opportunity Act—concluded
• For more details, visit – www.ftc.gov/bcp/conline/pubs/credit/ecoa.htm
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Federal Fair Debt Collection Practices Act
• Prohibited practices include:– Harassment of debtors (as with a
series of letters that contain menacing or threatening language, or with repeated telephone calls, especially at night)
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Federal Fair Debt Collection Practices Act--continued
• Statute added to Consumer Credit Protection Act in 1978
• Prohibited practices include:– Abusive and profane language
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Federal Fair Debt Collection Practices Act--continued
• Prohibited practices include:– Threats of violence
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Federal Fair Debt Collection Practices Act--continued
• Prohibited practices include:– Contact with third parties (i.e.
relatives, neighbors, friends, and employers)
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Federal Fair Debt Collection Practices Act--continued
• Prohibited practices include:– Communication with the debtor at
work
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Federal Fair Debt Collection Practices Act--concluded
• For more information, visit– www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
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Federal Fair CreditBilling Act
• Passed by Congress in 1974 to cover open-end credit accounts– Credit cards– Revolving charge accounts, etc.
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Federal Fair CreditBilling Act--continued
• Creditors must mail bills at least 14 days before the due date;
• Must acknowledge billing inquiries within 30 days;
• Must settle any complaints within 90 days
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Federal Fair CreditBilling Act--continued
• Creditors may not send repeated, insistent letters demanding payment until disputes over the billing are settled
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Federal Fair CreditBilling Act--continued
• Credit card holders may withhold payment for items that prove defective without being held liable for the entire amount owed. Applies only for purchases of more than $50 made in the buyer’s state or within 100 miles of the buyer’s home.
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Federal Fair CreditBilling Act--concluded
• For more information, visit– www.ftc.gov/bcp/conline/pubs/credit/fcb.htm
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Consumer Leasing Act
• Passed by Congress in 1976– Legislation that requires lessors to disclose
specific financial information about the terms of a lease, such as the monthly payment, the total amount of payments, and the allowance for a trade-in.
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Consumer Leasing Act-- continued
– The act also requires lessors to give an estimated value of the property, typically a car, at the end of the lease period.
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Federal Fair CreditReporting Act
• Regulates companies which review credit applicants
• Became law in 1970, but has been amended multiple times since
• Dictates how information can be collected, distributed, and used
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Credit RepairOrganizations Act
• April 1997
• Regulates companies that help consumers “repair” their credit histories
• For more information, visit– http://www.fdic.gov/news/news/financial/
2006/fil06031.pdf
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Federal Truth in Lending Act
• Part of the Consumer Credit Protection Act of 1968
• Requires full disclosure of interest and finance charges
• For more information, visit– http://www.fdic.gov/regulations/laws/rules/
6500-200.html
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Report all suspicious contacts to the Federal Trade Commission
through the Internet at www.consumer.gov/idtheft
or by calling 1-877-IDTHEFT.