The Consumer Credit Protection Act

The Consumer Credit Protection Act was passed in 1968, launched Truth in Lending disclosures, and was landmark legislation. The act forced creditors for the first time to state the costs of borrowing in a common language so that the consumer could figure out what the charges are, compare costs, and shop for the best credit deal.

Since the Consumer Credit Protection Act as passed, the number of protections available to consumers has multiplied rapidly. The concepts of “fair” and “equal” credit have been codified and written into laws that prohibit unfair discrimination in credit transactions. They also require that consumers be told why credit is denied and let borrowers find out about their credit records. In addition, it created a way for consumers to settle billing disputes.

Every law has been designed to reduce the problems and confusion about consumer credit. As consumer credit has become more widely used in the economy, it has become more complex. The laws enacted as part of the Consumer Credit Protection Act set a standard for how individuals are supposed to be treated in their financial dealings.

The laws state that:

• A person cannot be denied a credit card due to being a single woman
• A person’s risk is limited if a credit card is lost or stolen
• Errors on a monthly bill can be resolved without damages to a credit rating
• Credit cannot be shut off just because a person is over the age of 62

It is important that any consumer know his or her rights and how to use them.

Contact a Boston Bankruptcy Lawyer

If you are considering filing for bankruptcy, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates at 1-800-975-5346 to discuss your financial situation and to determine your legal options.