Consumer Credit Protection Act

Credit protection is provided under the Consumer Credit Protection Act of 1968. This act established 'Truth in Lending' disclosures, which effectively means that creditors MUST clearly state the true total cost of borrowing in easy to understand language so that the consumer could establish the full charges and compare costs to get the best credit deal.

Since 1968, credit protection has improved even further with concepts of "fair" and "equal" credit also written into laws. These prevent unfair discrimination in credit transactions by requiring lenders to tell consumers the reason when credit is denied. It also provides for borrowers to find out about their credit records, and establishes the process for consumers to settle billing disputes.

The aim of the provisions of the Act are to reduce problems and confusion around consumer credit and set a standard for how individuals are to be treated in financial dealings.

The laws provides that you:

• cannot be denied a credit card just because you are a single woman
• can limit your risk if a credit card is lost or stolen
• can resolve errors in your monthly bill without damage to your credit rating
• cannot have credit denied or terminated based upon reaching age 62

There is a handbook available that outlines the consumer credit laws and how they can help you shop for credit, apply for crdit accounts or credit cards, maintain your credit standing, and complain about an unfair deal. It also provides good credit management tips.

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