CONSUMER CREDIT PROTECTION ACT
The Consumer Credit Protection Act (15
U.S.C.A. § 1601 et seq. [1972]) is federal statute
designed to protect borrowers of money by
mandating complete disclosure of the terms and
conditions of finance charges in transactions; by
limiting the GARNISHMENT of wages; and by
regulating the use of charge accounts.
The Consumer Credit Protection Act was
the first general federal CONSUMER PROTECTION
legislation. Title I of this law, known as the
TRUTH-IN-LENDING ACT (15 U.S.C.A. § 1601 et
seq. [1968]), requires that the terms in CON-
SUMER CREDIT transactions be fully explained to
the prospective debtors. Title VI of the Con-
sumer Credit Protection Act, known as the FAIR
CREDIT REPORTING ACT (15 U.S.C.A. § 1601 et
seq. [1978]), applies to businesses that regularly
obtain consumer credit information for other
businesses. Its purpose is to ensure that con-
sumer reporting activities are conducted in a
manner that is fair and equitable to the affected
consumer.
Whereas the Consumer Credit Protection
Act is federal law, states have also passed many
statutes regulating consumer credit. For exam-
ple, the UNIFORM CONSUMER CREDIT CODE
(UCCC) is an initiative that was drafted by the
National Conference of Commissioners on Uni-
form State Laws in 1968 to help provide consis-
tency among the variety of consumer credit laws
that exist throughout state jurisdictions. The
purpose of the UCCC is threefold: to protect
consumers obtaining credit to finance transac-
tions; to ensure that adequate credit is provided;
and to generally govern the credit industry.As of
2003, the UCCC had been adopted in only seven
states and Guam. Many states, however, continue
to enact legislation that would provide consumer debtors similar protections contained
in the provisions of the UCCC.
