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Consumer Credit Protection Act Of 1968 Definition
The Consumer Credit Protection Act is a federal law that was enacted in 1968 that defines consumer rights and offers protection for consumers against lenders. The federal legislation specifies certain requirements that financial institutions and consumer lenders must follow during disclosure. When entering a loan agreement with consumers, consumer lenders are required to state in clear terms the cost of the loan, the annual interest rates, and the percentage charged and other terms of the loan. CCPA protects the right of consumers as it contains important laws that regulate the lending industry.
A Little More on What is the Consumer Credit Protection Act Of 1968
The Consumer Credit Protection Act of 1968 is an important piece of legislation that safeguards the rights of a consumer in a loan agreement. This law offers consumer protection against borrowers, some of the laws in CCPA are Fair debt Collection Practices Act, Truth in Lending Act and the Fair Credit Reporting Act.
CCPA clearly states that consumer lenders, including banks, auto-leasing firms, credit card companies, and others make the terms of borrowing transparent and understandable to borrowers. According to this legislation, no part of a borrowing contract must contain vague terms that are not easily understood by consumers or hidden from consumers.
Expansion of Consumer Law
The Consumer Credit Protection Act of 1968 is divided into sections and titles. In Title I of the act, consumer lenders are required to explain the terms of the loan to consumers in clear terms, they must be truthful in the terms of the loan. Requirements for wage garnishments are contained in title III of the Act while Title VI states the disclosure requirements that consumer lenders must follow.
Furthermore, the laws that were enacted as part of CCPA are;
- The Fair Debt Collection Practices Act
- The Truth in Lending Act
- The Fair Credit Reporting Act
- The Equal Credit Opportunity Act
- The Electronic Funds Transfer Act