Page 22 - Book8E

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TILA, the earliest of the federal consumer protection laws, has been amended several times, and has been copied in several states by state laws containing similar consumer protections.
The TILA requires that the terms in transactions involving consumer credit be fully explained to the prospective debtors. This act sets forth three basic rules: (1) a creditor cannot advertise a deal that ordinarily is not available to anyone except a preferred borrower; (2) advertisements must contain either all of the terms of a credit transaction or none of them; and (3) if the credit is to be repaid in more than four payments, the agreement must indicate, in clear and conspicuous print, that “the cost of credit is included in the price quoted for the goods and services.”
Let’s Review__________________________________
Above is information about 3 important laws that you should be famil- iar with. Match the descriptions below with one of these laws: a) Fair Credit Billing Act, b) Cooling-Off Rule, c) Truth in Lending Act
1. This law gives you three days to cancel qualifying purchases of $25 or more. Your right to cancel for a full refund extends until midnight of the third business day after the sale.
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2. This law gives you the right to notify your credit card company that you want to dispute a purchase. The credit card company must acknowledge your dispute in writing and conduct a reasonable inves- tigation of your problem.
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3. This law is designed to protect consumers in credit transactions by requiring creditors to be clear and explicit about the true costs of credit transactions.
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Important Laws and Regulations Designed to Protect Consumers
Answers: 1 (b), 2 (a), 3 (c)