Week 6 - What statutes affect credit contracts Usurycharging interest in excess of the statutory maximum is the practice of charging excessive

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What statutes affect credit contracts? Usury—charging interest in excess of the statutory maximum is the practice of charging excessive, unreasonably high, and often illegal interest rates on loans . The civil or criminal wrong of charging interest that is beyond the legal limit set by a State. The illegal profit which is required and received by the lender of a sum of money from the borrower for its use. In a more extended and improper sense, it is the receipt of any profit whatever for the use of money: it is only in the first of these senses that usury will be here considered. Equal Credit Opportunity Act (ECOA)—federal law prohibiting denial of credit on the basis of sex, race, color, religion, national origin, age, marital status, public assistance income, alimony, or child support income and plans for additional family To give all legal individuals an equal opportunity to apply for loans from financial institutions and other loan granting organizations. Individuals cannot be discriminated upon via factors that are not directly related to their creditworthiness. Read more: http://www.investopedia.com/terms/e/ecoa.asp#ixzz1ZlA2qcdp Truth in Lending Act (TILA)—federal law governing disclosures in credit contracts is a United States federal law designed to promote the informed use of consumer credit , by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed . [1] Consumer Credit Protection Act (CCPA)—first federal statute on credit disclosure requirements s federal statute designed to protect borrowers of money by mandating complete disclosure of the terms and conditions of finance charges in transactions; by limiting the Garnishment of wages; and by regulating the use of charge accounts. Open-end transactions—credit card transactions It is an open ended transaction with both parties maintaining the right of liquidation or a roll-over without prior notice within trading hours of the day. Closed-end transactions—finance contracts for pre-established amounts, as in the financing of a television purchase A transaction in which credit is extended only once for a specific amount over a specific period , meaning the money must be fully repaid within that period. A car loan is an example of a closed-end transaction. Opposite of
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This note was uploaded on 10/28/2011 for the course BUSINESS ACCT 305 taught by Professor Poletti during the Spring '09 term at DeVry Columbus North.

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Week 6 - What statutes affect credit contracts Usurycharging interest in excess of the statutory maximum is the practice of charging excessive

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