The Major Consumer Protection Laws

The major laws that govern financial institutions and protect individuals in their financial dealings are:

* Truth in Lending Act requires a lender to tell you how much it will cost to borrow money so that you can compare the terms of credit offered by different lenders.

* Fair Credit and Charge Card Disclosure Act requires a lender offering you a credit card to tell you the annual percentage rate (APR), the amount of any annual fee, and whether you have a grace period to pay your bill before a finance charge is added.

* Fair Credit Reporting Act controls how your credit history (how you pay your bills) is kept by credit bureaus and used by lenders.

* Equal Credit Opportunity Act prohibits lenders from discriminating against you in a credit transaction on the basis of certain personal characteristics such as race, color, religion, national origin, sex, marital status, age, because you receive public assistance or because you've exercised your rights under the Consumer Credit Protection Act.

* Fair Debt Collection Practices Act lays out the rules a debt collector must follow when trying to collect a debt from a consumer.

* Home Equity Loan Consumer Protection Act requires a lender to give you complete information about the home equity loan plan it offers—first when you receive an application and again before you first use the line of credit.

* The Home Ownership and Equity Protection Act requires disclosures and imposes substantive limitations on mortgage transactions having rates or fees above a certain percentage or amount. It also requires disclosures about the potential costs for reverse mortgages.

* Fair Housing Act prohibits lenders from discriminating against you in real estate mortgage or home improvement loans on the basis of race, color, religion, national origin, sex, familial status, or handicap.

* Real Estate Settlement Procedures Act states that lenders must give purchasers information about the costs required to close a mortgage loan. It also protects consumers from unnecessarily high real estate settlement costs by prohibiting certain business practices. This applies when you take out or refinance a loan secured by real estate such as a mortgage loan or a home equity loan.

* Fair Credit Billing Act requires that a lender promptly correct a mistake on your credit card bill.

* Expedited Funds Availability Act limits how long a bank may delay your use of the funds you deposit in an account.

* Truth in Savings Act requires lenders to disclose the terms of their deposit accounts in a uniform way.

* Electronic Fund Transfer Act limits an individual's liability if their ATM card is lost or stolen and calls for investigation and correction of errors made to your account.

* Consumer Leasing Act requires the costs and the terms of a consumer lease, such as a lease for a car or for furniture, be outlined to you so that you can compare the cost of leasing.

source- frb