Laws that Help Credit Card Holders
Whenever some aspect of life is involved in finances, it may sometimes be a little hard to understand for consumers. There are a lot of laws and stipulations revolving around the many rules related to credit cards from simple loans to credit card debt laws. Clearwater residents might not be aware how important some of these rules and regulations are and how much they actually maintain a safe and fair system as well as protect your legal rights! Even if you are not in a legal field, as a user of consumer credit it may be beneficial to brush up on popular laws to know your rights and not get taken advantage of by larger credit entities.
Truth in Lending Act
Lending out money that intends to be paid back with interest is known as a loan, but it wasn’t always that simple. Many shady practices were being implemented in order to trick consumers into making a deal without them knowing exactly what they are signing up for. After the truth in lending act and other credit card debt laws, Clearwater loan issuers must disclose in writing, as well as being in plain or common language, the terms, interest rate and other costs included in a loan or line of credit. Because of the complicated language and vaulted diction of older loan practices, many people were being tricked into signing up for bad deals that they were required to pay back.
Fair Credit Billing Act
If you meet certain guidelines, the Fair Credit Billing Act limits the financial responsibility someone may have for unauthorized charges. Before the Fair Credit Billing Act and other credit card debt laws, Clearwater consumers were responsible for credit card payments even if they:
· Never received merchandise they ordered
· Goods and services that they did not accept
· Were double charged or given an incorrect charge
This law makes it so that consumers are only reasonable of charges up to fifty dollars in situations where they did not make an order or if they never received their order.