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Unformatted text preview: Unit 3 Notes 22:00 Right’s of Consumers, Debtors, Creditors Credit Purchases have gone from 1945-1996 from 2.5 billion to 1.5 trillion. Consumer Credit Protection Act. • Main Source of Legislation for Credit Consumers and Debtors. • Enforced by Federal Administrative Agencies • Provides remedies for the individual • Imposes both civil and criminal sanctions • Consumer Credit Cost Disclosure o A.k.a. The Truth in Lending Act (TILA) o Requires people who are extending credit to disclose the true interest cost for the credit o The reason was so that individuals can compare and shop for the best interest rate. o 5 Primary Disclosure Requirement Wherever someone charges a finance charge they must comply or where the consumer makes more than 4 installment payments they must comply with these requirements. Also applies to Leases. They must show you the cash price of the item you are purchasing. They must give you the down payment or trade-in allowance. Give you the unpaid cash price. Known as how much you’re going to finance. Must tell you the finance charge you’re going to pay. Must tell you the APR of interest. Business’ who in the ordinary course of operations lend money, sell on credit, or arrange for the extension of credit to consumers have to comply with the law. o Non-Complying with the Act All actual damages Twice the amount of attorney’s fees Finance charges The damages may not exceed $2,000 The person has one year from the date of the violation to bring the lawsuit. A consumer can “rescind” the contract at anytime up to three years after the beginning of the deal. A creditor who willfully violates the can be liable criminally. Can be fined $5,000 and/or up to 1 year. o 3 Day Right of Rescission to get out of a Contract. Exceptions Emergency Repairs to Real Estate. Mortgages. • Credit Purchases with Credit Cards o To be liable for a credit card, you must request that the credit card be sent to you to be liable. o If you’re card is lost or stolen and you reply with the notice requirements of you’re agreement, you are only liable to $50. • Debit Cards o If you’re debit card is lost or stolen, you are liable to $50, only if notified in two days; After two days, you’re liability increases to $500, after 60 days, you have unlimited liability....
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This note was uploaded on 04/17/2008 for the course BUL 3130 taught by Professor Tessitore during the Spring '08 term at University of Central Florida.
- Spring '08
- Business Law