Federal Law - Skills test

TILA (Truth in Lending Act)

Protects consumers in credit transactions by requiring disclosure of important credit terms and costs, including finance charges and APR.

TILA — Main Purpose

To help consumers understand and compare the true cost and terms of credit before borrowing.

TILA — Credit Transactions

Consumer transactions involving credit or borrowing money that are covered by the Act.

TILA — Disclosure of Terms

Requires creditors to provide important information about the terms and cost of credit.

TILA — Finance Charge

The cost of obtaining credit, which can include interest and certain credit-related fees.

Regulation Z

The federal regulation that implements TILA and establishes rules for credit disclosures and practices.

FCRA (Fair Credit Reporting Act)

Protects consumers by regulating the collection, use, sharing, and accuracy of consumer credit information.

FCRA — Main Purpose

To promote accuracy, fairness, and privacy in consumer reporting.

FCRA — Credit Reports

Reports containing consumer information used for purposes such as credit, employment, insurance, or housing.

FCRA — Consumer Credit Information

Information about a consumer's credit history, accounts, payment history, debts, and other reportable information.

FCRA — Accuracy

Requires consumer-reporting systems to follow rules designed to ensure consumer information is accurate and allows consumers to dispute inaccurate information.

FCRA — Permissible Purpose

Requires a legally recognized reason for accessing a consumer report.

FDCPA (Fair Debt Collection Practices Act)

Protects consumers from abusive, deceptive, and unfair practices by certain debt collectors.

FDCPA — Main Purpose

To prevent harassment, deception, and unfair treatment during debt collection.

FDCPA — Debt Collectors

Generally regulates third-party debt collectors and other parties covered by the Act when collecting consumer debts.

FDCPA — Collection Practices

Sets rules and restrictions on how covered debt collectors may attempt to collect consumer debts.

FDCPA — Communication Restrictions

Limits certain communications by debt collectors, including rules concerning timing, location, third parties, and requests to stop communication.

FDCPA — Debt Validation

Gives consumers rights to obtain information about and dispute certain debts when the Act's requirements are met.

ECOA (Equal Credit Opportunity Act)

Prohibits discrimination in credit transactions based on certain protected characteristics.

ECOA — Main Purpose

To provide consumers with equal opportunity and access to credit without unlawful discrimination.

ECOA — Protected Characteristics

Includes race, color, religion, national origin, sex, marital status, age subject to statutory qualifications, receipt of public assistance, and certain exercise of consumer-protection rights.

ECOA — Adverse Action

When a creditor takes certain unfavorable action on a credit application, such as denying credit, the consumer may have rights to receive information about the decision.

Regulation B

The federal regulation that implements ECOA and establishes rules against discrimination in credit.

FTC (Federal Trade Commission)

A federal agency responsible for enforcing and administering various consumer-protection and competition laws.

FTC — Main Purpose

Protects consumers from fraud, deception, unfair practices, and other unlawful business conduct.

FTC — Unfair or Deceptive Practices

Business practices that are unfair to consumers or that mislead consumers in ways prohibited by law.

TILA vs. FCRA

TILA focuses on the cost and terms of credit; FCRA focuses on consumer reports and credit information.

FCRA vs. FDCPA

FCRA focuses on credit reporting and accuracy; FDCPA focuses on debt collection practices.

FDCPA vs. ECOA

FDCPA regulates certain debt collection practices; ECOA prohibits discrimination in credit transactions.

TILA vs. ECOA

TILA focuses on disclosure of credit costs and terms; ECOA focuses on equal opportunity and nondiscrimination in credit.

TILA Memory Trick

TILA = Terms and cost of credit.

FCRA Memory Trick

FCRA = Credit Reports.

FDCPA Memory Trick

FDCPA = Debt Collectors.

ECOA Memory Trick

ECOA = Equal Credit Opportunity.

FTC Memory Trick

FTC = Consumer Protection and enforcement.