5. Consumer Protection Laws and Your Loan Agreements
FAQs
Q: What is the Truth in Lending Act (TILA)?
A: TILA ensures lenders disclose key terms of the loan.
Q: What does the Fair Debt Collection Practices Act (FDCPA) do?
A: It protects borrowers from abusive debt collection practices.
Q: What is the Equal Credit Opportunity Act (ECOA)?
A: It prohibits discrimination in lending.
Benefits
- Transparency in loan terms.
- Protection from abusive practices.
- Fair access to credit.
Losses
- Potential for lender non-compliance.
- Risk of misinformation.
- Legal complexity in enforcement.