This Essay explains 4 important credit laws. Giving information about its creation and their effects.
Credit has become a major part of our lives. We use it to buy a lot of our products and major purchases. But it can be a hindering problem for many people.
There are many laws that affect credit and how people can get credit. One of these laws is the Equal Credit Opportunity Act. This act was created in 1975, and amended in 1977, 1988, and 1991. This law allows every one an equal chance to get credit. But just because of this act it does not mean that everyone can get credit. This law deals with creditors that sell credit, such as banks, small loan and finance companies, retail stores, credit card companies, and credit unions. Also businesses are protected just like consumers under this law. ECOA also applies to people that offer financing.
Because of this law, creditors cannot ask you to reveal your race, religion, marital status, or sex. They cannot ask if you are divorced or widowed; only married, unmarried, or separated. They cannot consider the race of the people that live in your neighborhood when you are applying for credit.
Another law is the Fair Credit Reporting Act. This act became effective in 1971; it was amended in 1978, 1989, 1992, and in 1994. This law makes sure that the information in your credit files is correct. This information is collected by different agencies and is used to see if you are eligible for credit. The FCRA allows you to know if information from your file was used against you. This means if you are denied credit because of info from your file you are entitled the right to know the agency that put it there. You can also...