Consumer Credit Protection Act

1968 federal legislation that makes it mandatory for lenders to disclose to credit applicants the annual interest percentage rate (APR) and any finance charge.

A federal statute designed to protect borrowers of money by mandating complete disclosure of the terms and conditions of finance charges in transactions by limiting the garnishment of wages and by regulating the use of charge accounts.

The Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq. [1972]) was the first general federal consumer protection legislation. Title I of this law, known as the Truth-in-Lending Act (15 U.S.C.A. § 1601 et seq. [1968]), requires that the terms in consumer credit transactions be fully explained to the prospective debtors. Title VI of the Consumer Credit Protection Act, known as the Fair Credit Reporting Act (15 U.S.C.A. § 1601 et seq. [1978]), applies to businesses that regularly obtain consumer credit information for other businesses. Its purpose is to ensure that consumer reporting activities are conducted in a manner that is fair and equitable to the affected consumer.

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The United States federal wage garnishment law, widely known as the Consumer Credit Protection Act guards employees from discharge by their employers because their wages have been garnished in any one week. It was approved by the government in 1968. The Wage and Hour Division of the United States Department of Labor includes the Employment Standards Administration, who administers the act. The informed use of credit is administered by the United States Congress and stabilizes economic acts to be enhanced with competition informed unto various financial institutions that are engaged in extension of consumer credit that would be strengthened otherwise by informed credit use.

References

• Cornell University Law School Webpage
• FDIC Regulations- Consumer Credit Protection Act

External links

• FDIC Laws, Regulations, Related Acts- Consumer Protection
• US CODE: Title 15, Chapter 41- Consumer Credit Protection

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