Chapter 4, Section 4. Government regulation of credit. Usury law – law restricting the amount of interest that can be charged for credit. Many states have a maximum interest rate of 18% a year, or 1.5% per month. State usury law.
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Usury law – law restricting the amount of interest that can be charged for credit.
1968 - Ensures that consumers are fully informed about the costs and conditions of borrowing.Truth in lending act
1970 – Protects the privacy and accuracy of information on a credit check.
3 major credit bureaus:
1) Equifax 2) Experian 3) Trans UnionFair credit reporting act
1974 – prohibits discrimination based on sex, race, religion, marital status, age, or receipt of public assistance.Equal credit opportunity act
1977 – prevents abuse by professional collectors; does not include banks or businesses that collect their own accounts.Fair debt collection practices act
Bankruptcy – the inability to pay debts based on the income received.