Consumer Credit Protection Acts

What is the Truth in Lending Act (TILA)?

The Truth in Lending Act is designed to protect consumers when dealing with potential creditors. It requires credit companies and lenders to provide certain information prior to processing a credit or loan application:

  • full terms of the loan
  • total amount of money included in the loan
  • interest and finance charges
  • due dates for future repayments
  • your rights as a consumer

Not only must credit companies and lenders provide this information, they must do so using standardized language and terminology. This enables the consumer to more easily compare credit terms and make a more informed decision when considering lines of credit and/or loans.
* For more information visit the Federal Trade Commission website at: www.consumer.ftc.gov

What is the Fair Credit Billing Act (FCBA)?

The Fair Credit Billing Act is an amendment to the Truth in Lending Act. The main purpose of this act is to protect consumers from unfair billing practices engaged by credit companies and lenders. It also provides a formal procedure to address certain billing errors including:

  • charges listed in the wrong amount
  • charges for goods and services that were not delivered as specified
  • charges for goods that were not actually received by the consumer
  • under certain circumstances, charges that were delivered to incorrect addresses
  • errors in calculations of administrative or finance fees

* For more information visit the Federal Trade Commission website at: www.consumer.ftc.gov

What is the Equal Credit Opportunity Act (ECOA)?

The Equal Credit Opportunity Act protects consumers from various types of unfair business practices that some credit and loan companies willingly or unwillingly engage in. More specifically, it prevents credit discrimination on the basis of:

  • race, color, religion, national origin, gender, marital status, or age
  • the fact that an applicant receives public assistance
  • the demographics of the neighborhood you live in

Preventing these types of discrimination is important so that companies make credit available to all creditworthy applicants.* For more information visit the Federal Trade Commission website at: www.consumer.ftc.gov

What is the Fair Credit Reporting Act (FCRA)?

The Fair Credit Reporting Act was enacted to help promote the accuracy, fairness, and privacy of the information listed within your credit reports and within the files of the consumer reporting agencies. The main rights provided and protected by this act are:

  • You must be told if information in your file has been used against you.
  • You have the right to know what is in your file.
  • You have the right to ask for your credit score.
  • You have the right to dispute incomplete or inaccurate information.
  • Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.
  • Consumer reporting agencies may not report outdated negative information.
  • Limits who has access to your file.
  • You must give your consent for reports to be provided to employers.
  • You may limit “prescreened” offers of credit and insurance you get based on information in your credit report.
  • You may seek damages from violators.
  • Identity theft victims and active duty military personnel have additional rights.

* For more information visit the Federal Trade Commission website at: www.consumer.ftc.gov

What is the Fair Debt Collection Practices Act (FDCPA)?

The Fair Debt Collection Practices Act focuses on how debt collectors interact and treat their clients. It essentially provides debt collectors a set of rules they must follow. These rules protect consumers from general harassment and unfair practices. Some of the rules debt collectors must follow include:

  • only contacting you between 8:00am – 9:00pm
  • properly identify themselves when they call
  • clearly stating their purpose for calling you

* For more information visit the Federal Trade Commission website at: www.consumer.ftc.gov