Article Abstract:
Credit regulations are intended to protect uninformed consumers and have been developed for each type of lender, differing in rate limits or maximum amounts which can be loaned, depending generally on the type of customer being served and the costs involved in lending. Credit is a circular relationship, with the money earned from loans determining rates earned by savers. Bad debts must be covered by appropriate rates. Loan rate floors are determined by the rates paid savers, and the ceiling rate determines earnings. Restrictions on rates mean the amount of credit available to borrowers is reduced; a smaller reduction is experienced if subsidies result, but they are at the expense of individuals who pay cash. More expensive credit substitutes must be used when credit is not available.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Bills introduced into the US Congress for the 1990 session with a potential impact on the credit industry include: HR 909, which is a proposed amendment to the Fair Credit Reporting Act. The Acts require prompt, accurate, written disclosures of adverse information by consumer reporting agencies to consumers. Another Act is HR 898, a proposed amendment to the Equal Credit Opportunity Act. The Act would prohibit discrimination against members of the Armed Forces on the basis of rank. The third Act is HR 1566, a proposed amendment to the Truth in Lending Act. This Act would establish standards for information required from borrowers by creditors on loan applications.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Congress faces two important pieces of credit legislation during the second session of the 100th Congress. The Senate's S1201 and the House's HR458, both of which would restrict the activities of 'credit repair organizations'. These organizations attempt to help consumers with bad credit histories or poor ratings by 'cleaning up' their files. These efforts are often futile and cost consumers time and money. Both pieces of legislation seek to prohibit credit repair shops from making false or misleading representations about what they can do and to provide consumers with the right to sue. Members of the International Credit Assn strongly support this legislation.
User Contributions:
Comment about this article or add new information about this topic: