MGMT 211 - Consumer Laws

MGMT 211 - Consumer Laws - Consumer Law/Creditor Rights o...

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o Consumer Credit Protection Act (CCPA) 1. Truth and Lending Act – creditor in consumer loans (covers personal not business) How much finance charge really going to cost me? Provide with disclosure of what the interest is going to cost you Purchase of car or house Interest rate can make a huge difference Installment contract that is less than $25,000 (furniture, car, etc. ..) Part of contract or separate but you are well aware Regulation Z o Interest rate has to be annual rate so you can compare (in terms of APR) o Service fees, transaction fees, ect. or any other “hidden charges” have to be disclosed to you o Credit life insurance – if you buy a product and you die before you paid all of it then it will be paid out in full (in TX not a good idea to get b/c the spouse will still have to pay) o Fee for appraisal, credit report, ect. has to be disclosed to you o Correct within 15 days or else no charges can be applied Recovery : o You get twice the finance charges (max. of $1000) o Attorney and court fees (you won’t get rich off of this…) 2. Consumer Leasing Act – standardize consumer leases for personal use (again not for businesses) Has to be less than $25,000 lease paid in installment Have to disclose the following to you: o Tell you the time and amount of lease o Express warranty o Who has to take care of property (usually the consumer) o Penalty if you turn it in EARLY (watch out for provisions) o Option of buying the property or not 3. Fair Credit Billing Act – there are two problems associated with this that this act provides correction for Unsolicited credit cards – company sends you credit cards without your permission for use without any contracts or anything Inaccurate billing on credit card – insufficient amount charged on card o If this occurs than consumer should take the following steps: Take procedures of settling the disputed billing amount Have 60 days of the 1 st bill you received (not the 2 nd but the 1 st
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This note was uploaded on 09/05/2008 for the course MGMT 211 taught by Professor Swim during the Fall '08 term at Texas A&M.

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MGMT 211 - Consumer Laws - Consumer Law/Creditor Rights o...

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