CPA Debtors & Sureties-4

CPA Debtors & Sureties-4 - DEBTORS/CREDITORS...

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DEBTORS/CREDITORS CONSUMER CREDIT PROTECTION ACT All of the following represent amendments to the Act A. Truth in Lending Act (TILA) 1) basically a disclosure law 2) applies to persons, who in the ordinary course of business: --lend funds --sell on credit or --arrange for the extension of credit 3) applies to any installment payment contract involving more than 4 installments 4) applies to loans of $25,000 or less 5) requires lenders to disclose --the interest rate as a percentage --total cost of interest as a dollar amount --total cost of credit as a dollar amount B. Credit Card Fraud Act 1) requires a cardholder to report a lost or stolen card or other unauthorized use 2) a cardholder has a maximum liability of $50 for any charges made before notification 3) a cardholder has NO liability for any unauthorized charges made after notification 4) person has no liability for improperly issued cards 5) a cardholder can dispute improper charges and withhold payment on those charges while the dispute is being resolved. C. Fair Credit Reporting Act 1) applies to credit-reporting agencies 2) credit reports can only be issued for specified purposes: --extension of credit --issuance of insurance policies --compliance with a court order --compliance with a customer’s request 3) if a consumer is denied credit/insurance, or pays more than others for credit/ agency. 4) consumers are now entitled to one free copy annually of their credit report. Union). See www.annualreport.com 5) if a consumer finds incorrect or outdated information in their file, then --the reporting agency MUST investigate the matter --in response to the consumers WRITTEN request --the agency MUST REMOVE any information that is false or that
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CPA Debtors & Sureties-4 - DEBTORS/CREDITORS...

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