What is the Consumer Credit Protection Act? | Personal finance
The 1960s are known to be an important period in the history of the United States. It was a period that ushered in many revolutionary legislative changes, such as the Civil Rights Act of 1964, the Medicare Act of 1965, and the Voting Rights Act of 1965. In the midst of these Revolutionary federal laws, you’d be remiss to forget about consumer credit. Protection Act (LCPA).
Prior to the CCPA, consumers in the United States did not enjoy many rights in lending, debt collection, and credit reporting practices. Back then, lenders could (and often did) benefit consumers. They didn’t have to disclose the terms or costs of the loan up front, could charge outrageous interest rates, and could foreclose a large percentage of your paycheck if you didn’t pay off your debt as promised.
When the Consumer Credit Protection Act (CCPA) was passed in 1968, it aimed to protect consumers from these and other abusive practices. The law imposed restrictions on banks, credit card issuers, debt collectors, etc. The law introduced many guarantees that American consumers still enjoy today, more than 40 years after it was passed into federal law.
Over the years, Congress has passed more laws and brought them under the umbrella of the CCPA to help protect the financial lives of American consumers. The Fair Credit Reporting Act, Equal Credit Opportunity Act and Fair Debt Collection Practices Act, along with a number of others, are included in this list.