Credit allows consumers to finance transactions without having to pay the full cost of the merchandise at the time of the purchase. A common form of consumer credit is a credit card account issued by a financial institution. Merchants may also provide financing for products which they sell. Banks may directly finance purchases through loans and mortgages. Consumers imperatively rely on credit, so it is necessary that credit laws help protect the consumer. I will discuss some of the major credit laws that impact the consumer, examine whether these laws are working, and talk about possible changes that might be needed to make sure the consumer is rightly protected.
The law of consumer credit is primarily embodied in federal and state
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(“About the Federal Trade Commission”)
The FTC’s work is performed by the Bureaus of Consumer Protection, Competition and Economics. The body of the Bureau of Consumer Protection was created to protect consumers against unfair, deceptive or fraudulent practices in which it enforces a variety of consumer protection laws enacted by Congress. It protects consumers obtaining credit to finance their transactions, ensures that adequate credit is provided, and governs the credit industry in general. Congress passed the Consumer Credit Protection Act, in part, to regulate the consumer credit industry, requiring creditors to disclose credit terms to consumers. The Consumer Credit Protection Act also protects consumers from loan sharks, restricts the garnishing of wages, and established the National Commission on Consumer Finance to investigate the consumer finance industry. Credit card companies, credit reporting agencies, and certain debt collectors are regulated by the Act. The Act also prohibits discrimination based on sex or marital status in extending of credit.
Even with these acts there to protect consumers from obtaining bad credit, there still are complaints about lenders that are non-compliant in their credit agreements. In 1974, the Consumer Credit Protection Act stated that borrowers could
The Federal Trade Commission(FTC) was created in 1914. It was created to ensure that there were no businesses that were anticompetitive; meaning that there wasn’t one company or business that was creating a monopoly. The FTC has three main goals; they are to protect consumers, maintain competition, and advance performance. They protect the consumers by preventing fraud and making sure businesses are fair in the marketplace. They maintain competition by preventing companies from merging together and creating a monopoly. Finally, they advance performance by advancing the FTC’s performance through organizational, personal, and management excellence. The FTC is very beneficial, and although not everybody knows about it, as a consumer it helps with the economy of every American. Throughout the years since it was created, there has been more laws added that help keep businesses
Predatory lending has caused many conflicts in the American society. Victims who fall for predatory lending are
Go to www.annualcreditreport.com, a site authorized by the Federal Trade Commission to provide free consumer credit reports.
The Consumer Finance Protection Bureau (CFPB) governs many financial institutions. The finance and Insurance office at your local dealerships is considered a financial institution. We collect credit information, originate loans, and act on behalf of lenders. This
The Federal Trade Commission enforces a variety of federal antitrust and consumer protection laws. The Commission seeks to
A college student in today’s society obtains a high amount of debt from all the necessary loans taken out to pay for the expensive cost of a college education. For those who do have a high paying job after college or are in generally lower salary careers, these debts become lifelong companions because they are unable to pay them back with their incomes. It is proposed that income-contingent loans will help people paying back student loans to pay them back at a rate in which is based on how much money they are making. Then after 10-20 years they are forgiven of their debts, which allows them to put their incomes towards building their future rather than paying back their past. Kevin Carey is an American higher education writer, policy analyst and a Director of the Education Policy Program at New America. On October 23, 2011 he published an article, titled “The U.S. Should Adopt Income-Based Loans Now” which discusses the need for income-based loans here in America. An analysis of Kevin Carey’s essay will identify and detail the author’s project, two claims and evidence, and the refutation in order to determine its effectiveness.
Consumer protection laws are federal and state statues governing sales and credit practices involving consumer goods. Consumer Product Safety Commission, Unfair or Deceptive Trade Practices, Truth in Lending Act, Fair Debt Collection Practices Act, Warranties and Consumer Remedies are laws that were establish to give the consumer a fair shake at buying or borrowing money. Goods that were purchase or service for personal use were presumed fair that buyers and sellers would bargained for equal positions. The consumer protection is a law that has to contribute to safety, protecting the health of consumers and the economic interest of consumers. Local trade practices consider unfair or deceptive may fall with Federal Trade Commission laws and regulations and have an effect on interstate commerce. Federal and state laws governing sales, credit financing and reporting, product quality, leases, sales practices, debt collection and other aspects of consumer transactions may be regulated as deceptive trade practices. Consumers are protected by several types of agencies and statues that are enforced by state and federal laws. Today many of consumer protection issues are involve with the
What is the FTC? The FTC stands for Federal Trade Commission. The Federal Trade Commission is an independent federal agency created by Congress in 1914 to help prevent unfair business practices, deception, fair trade practices, and unfair competition. The FTC’s mission is to protect the consumers by enacting laws to ensure that businesses cannot cheat people out of money and keep businesses from being unethical and immoral. The FTC takes complaints about businesses and investigates them for fraud or unfair labor practices every year (Silbersack, 2013).
The Federal Trade Commission (FTC) was created in 1914 primarily as a way for the government to “trust bust” or apply regulations ensuring a free marketplace for U.S. consumers and business enterprises. In this regard, the FTC enforces antitrust viola- tions that could hamper consumer interests, as well as federal consumer protection laws against fraud, deception, and unfair business practices. The commission’s primary enforcement mechanism is the Bureau of Consumer Protection, which is divided into seven divisions: (1) enforcement, (2) advertising practices, (3) financial practices, (4) marketing practices, (5) planning and information, (6) consumer and business educa- tion programs, and (7) privacy and identity protection.21 As the federal
What The CPFB Rule Does: The terms of the CPFB's proposed rule has two parts. First and foremost, it restores Americans' rights to come together and hold big banks accountable for unethical or predatory practices. It also introduces a new degree of transparency into the arbitration process. In fact,
Established in 1914, the Federal Trade Commission (FTC), is responsible for ensuring customer protection and preventing monopolistic activities by businesses. As an independent government agency, “The FTC protects consumers by stopping unfair, deceptive and fraudulent practices in the marketplace” (“What We Do,” 2013). This is done by inspecting individuals or corporations that violate laws, promoting new regulations for companies to follow and informing consumers of their rights and responsibilities. Another aspect that the FTC controls is promotion of competition, as “it benefits consumers by keeping the prices low and the quality and choice of goods and services high” (“What We Do,” 2013). Monopolies have not been a part of the US economic
In response to those weaknesses, the Federal Trade Commission was created and given authority to enforce the acts’ provisions and “protect consumers by preventing anticompetitive, deceptive, and unfair business practices… and accomplishing this without unduly burdening legitimate business activity” (“About the FTC”). The Federal Trade Commission’s responsibilities included preventing and dissolving monopolies, bringing civil law suits against violators of the law, and monitoring the business community for violations of law (Davis). Since its creation, rules such as the Telemarketing Sales Rule, Pay-Per-Call Rule, and Equal Credit Opportunity Act were placed under the Commission’s jurisdiction, increasing their magnitude. However, in the Constitution Congress is given power, “[t]o regulate
The new consumer protection with this law is that applications such as loan and credit cards must be easy to understand. For example there can’t be any “fine print” that is tricky or hard to understand and there cannot be any hidden fees. Next time banks take big risk and fail the government will no longer bailout them on the reason “too big to fail”. If the bank fails because of their business practices; just like any regular mom and pop store it closes and files bankruptcy.
Whilst a critical part of consumer spending, credit card companies are constantly accused of malicious legal contracts and schemes to increase profits. Without heavy regulation, these companies have the power to bankrupt millions of Americans that rely on credit cards in their daily lives. However, after the introduction of The Credit Card Act of 2009, these accusations represent an inability to accept responsibility for financial blunders on the consumer’s behalf. Due largely in part to the government’s strict regulations, credit card companies should not be at fault for the student credit card debt crisis. Credit card companies remain blameless for student credit card debt as a result of
In today’s economy, cash or a credit card is needed to meet the basic human needs. It is an apparent fact that we need cash or credit cards to purchase items such as food, clothing, and to buy gas. Also, when you are out shopping and discover that you have used all the cash in your possession, it is then that you realize that the advantage of having a credit card. Furthermore, with cash, you are restricted to the amount in your wallet or purse; however, a credit card allows you to pay for your purchase at a later date. Both cash and credit cards can be useful when you manage them wisely. While cash and credit cards are similar in that they both are readily accessible, used for goods and services at the time of purchase, they are dissimilar because of theft, high- interest rates, identity theft.