Essay on Reforming Credit Laws - 1435 Words

Credit allows consumers to finance transactions without having to pay the full cost of the merchandise at the time of the purchase. A common form of consumer credit is a credit card account issued by a financial institution. Merchants may also provide financing for products which they sell. Banks may directly finance purchases through loans and mortgages. Consumers imperatively rely on credit, so it is necessary that credit laws help protect the consumer. I will discuss some of the major credit laws that impact the consumer, examine whether these laws are working, and talk about possible changes that might be needed to make sure the consumer is rightly protected. The law of consumer credit is primarily embodied in federal and state†¦show more content†¦(â€Å"About the Federal Trade Commission†) The FTC’s work is performed by the Bureaus of Consumer Protection, Competition and Economics. The body of the Bureau of Consumer Protection was created to protect consumers against unfair, deceptive or fraudulent practices in which it enforces a variety of consumer protection laws enacted by Congress. It protects consumers obtaining credit to finance their transactions, ensures that adequate credit is provided, and governs the credit industry in general. Congress passed the Consumer Credit Protection Act, in part, to regulate the consumer credit industry, requiring creditors to disclose credit terms to consumers. The Consumer Credit Protection Act also protects consumers from loan sharks, restricts the garnishing of wages, and established the National Commission on Consumer Finance to investigate the consumer finance industry. Credit card companies, credit reporting agencies, and certain debt collectors are regulated by the Act. The Act also prohibits discrimination based on s ex or marital status in extending of credit. Even with these acts there to protect consumers from obtaining bad credit, there still are complaints about lenders that are non-compliant in their credit agreements. In 1974, the Consumer Credit Protection Act stated that borrowers couldShow MoreRelatedReducing The Value Of Excise Expenditure1481 Words   |  6 Pagesfederal spending.1 Tax expenditures are defined under the Congressional Budget and Impoundment Control Act of 1974 as revenue losses attributable to Federal tax laws which allow a special exclusion exception, or deduction or which provide a special credit, a preferential rate of tax, or a deferral of tax liability.†2 Exclusions, deductions, credits and other tax preferences are â€Å"expenditures† from government’s perspective. See Figure 1: Examples of Six Types of Tax Expenditures. 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