These Credit Rights Laws subject creditors to liability not just for not crediting sales properly--for example, by failing to calculate finance charges and fees correctly and deducting them--and for charging unauthorized amounts, but also for providing false information to consumers before a credit transaction. Without such disclosures, customers may not understand the actual cost of the credit, including interest due. They also may not be familiar with the legal rights and procedures available to them in case of disputes over billing or the collection process.

The Truth in Lending Act was enacted to protect consumers.

This Act makes it easier for customers to compare loan terms. If a customer receives a loan on January 1 and is required to pay it back within twelve months, that interest rate will have to be clearly stated on the loan documents.

Fair Credit Billing Act

You must notify the creditor of any billing error on your credit or debit card within 60 days of the charge, and the creditor must respond and resolve it within 30 days.

The 2020 Equal Credit Opportunity Act mandates that lenders identify credit applicants who may not have access to credit and take reasonable steps to assist them.

The Equal Credit Opportunity Act can only be applied to individuals who already have bankruptcies, civil judgments, or delinquent debts and does not apply to individuals who do not have those types of blemishes on their credit records. Credit companies may not discriminate against an applicant based on color, religion, national origin, age, sex, or marital status. The only justifiable bases for declining to extend credit are the applicant's financial status (earnings and savings) and credit record. Although there is a prohibition against age discrimination, a credit company can reject an underage consumer.

The Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act is a federal law regarding credit reporting agencies. It protects consumers from having their credit eligibility disrupted due to incomplete or misleading information in one's credit reports. It also allows consumers to receive a free credit report each year. The law gives consumers the right to receive a copy of their credit reports and challenge inaccurate information. If the business reporting inaccurate information does not change or delete the inaccurate information after being alerted to the inaccuracy, the consumer can add a 100-word statement to the file explaining their side of the story.

Fair Debt Collection Practices Act (FDCPA)

This federal law addresses abusive methods used by third-party debt collectors. Some of the things that the "FDCPA" rule requires can include
  1. stopping collection activity when it's known to be oppressive or harassing,
  2. mentioning neither the presence nor the amount of debt to anyone outside the immediate family,
  3. verification of any earnest claims, and
  4. the name, address, and telephone number of the collection agency.