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CREDIT - Truth In Lending

The Truth in Lending Act provides these rights:

• Periodic statements must be mailed to consumers using credit cards and revolving charge accounts in sufficient time to avoid finance charges by prompt payment.
• The issuance of unsolicited credit cards is prohibited. Unless the card is accepted, you may not be held liable for any charges made.
• Cardholder liability for lost or stolen credit cards is the lesser of $50 or the amount charged prior to notification of the loss.
• Creditors must disclose to you the total finance charge, including all charges such as placement fees and insurance, the annual percentage rate of interest, and the amount of each monthly payment and the number of payments required.
• A creditor can require you to take out insurance to guarantee that a debt will be paid should you die, get sick, or become disabled or to cover damage to property which is collateral for the debt.
• If insurance is required, the premium charges must be included when computing the annual percentage rate. If you voluntarily request insurance or if you choose to obtain it from an outside insurance company, then the costs need not be included in the annual percentage fee.

For free brochures on the Truth in Lending Act,
call the Office of Consumer Protection at (800) 942-2669