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The Consumer Credit Protection Act of 1968 — a law that launched Truth in Lending
disclosures — was landmark legislation. For the first time, banks had to state
the cost of borrowing in a common language so that you—the consumer—could figure
out what the charges are, compare costs, and shop for the best credit deal.
Since 1968, credit protections have improved rapidly. The concepts of
'fair' and 'equal' credit have been written into laws that bar unfair
discrimination in credit transactions, require that consumers be told the reason
when credit is denied, let borrowers find out about their credit records, and
set up a way for consumers to settle billing disputes.
Each law was meant to reduce the problems and confusion about consumer
credit, which as it became more widely used in our economy, also grew more
complex. Together, these laws set a standard for how consumers are to be
treated in their financial dealings.
The laws say, for example,
- that you cannot be denied a credit card just because you’re a single woman
- that you can limit your risk if a credit card is lost or stolen
- that you can resolve errors in your monthly bill without damage to your credit rating and
- that you cannot have credit shut off just
because you’ve reached age 62.
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