There are lots of car dealerships, banks, and mortgage lenders out there that are just scams. Some people like to rip people off by tricking them into signing up for stuff they can’t pay for. Other times when a bank or dealership is legitimate it may still try to hide things from consumers and cheat them out of their money. Luckily everyone knows that sometimes people try to cheat and lie so there are plenty of laws on the books to prevent that from happening. Everyone getting a loan should always familiarize themselves with what the law says, to always make sure they aren’t being cheated. Here at Scott McCorkle’s Credit Capitol we respect our customers and would never try to cheat them, but it can’t hurt to have more information when you are thinking about making a big commitment like a new auto loan.
The first law to look at is the Truth in Lending Act. This requires that lenders provide all of their customers with a written statement of all the terms and agreements that the customer is signing up for. Lenders are required to tell consumers the interest rate of the loan, the finance charges, the monthly payments required, the due dates, the total amount of the loan, the length of the loan and the price of the fee for late payment.
The Consumer Leasing Act is the next law. This law is similar to the Truth in Lending Act, because it regulates what lenders are required to notify consumers about when they sign a lease. But this law is slightly different, offering the terms required in the Truth in Lending Act but for leases instead of loans. Under the Consumer Leasing Act lenders are required to notify customers of the amount due when the lease is signed or when the product is delivered, the number and amounts of monthly payments, all the fees that will be charged, and the charges for default or late payments. And particularly useful under this act is that automobile lessors must also inform consumers of the annual mileage allowance and charges for excessive mileage, the ability for the consumer to purchase the vehicle at the end of the lease, the price for purchasing at the end of the lease, as well as any other payments that may be required.
The Credit Practices Rule is another important law for consumers to be familiar with, regulating what some lenders are allowed to charge for and notification of liability. This law states that lenders must provide this information in writing. It regulates that lenders cannot charge late fees under certain circumstances, and limits unfair contract provisions.
The Equal Credit Opportunity Act is also a big one, but is likely well known due to the fact that equal opportunity laws are much more common these days. This act, like all equal opportunity laws, enforces that no one can be denied credit on the basis of discrimination. Race, gender, color, marital status, religion, heritage, and age are all protected by this law. This act also bars lenders from denying credit because of the acceptance of public assistance programs.
And lastly, another well known law is the Fair Credit Reporting Act. Many consumers have heard of this law because of its widespread media attention, but a surprising amount of people don’t actually know what this act does for consumers. The Fair Credit Reporting Act is the law that guarantees all American citizens the right to one free credit report each year from the official government credit reporting agency. It allows consumers to call to report identity theft and it provide consumers with a channel for fighting inaccurate credit information on their file.
With a broad overview of the many laws which govern our lending and borrowing habits, consumers can make more informed decisions about their lending choices. Many consumers let false information about their rights as a consumer stand in the way of them seeking a loan or other financing options. If you are ever concerned that you may not be able to get a loan or other credit always double check to make sure that there are no options for you. Many consumers would be surprised to find out that they qualify for a lot of things they never realized they could get.
If you are interested in a new auto loan please visit our contact us page or call 866-442-0871.