Credit Rights/Laws and Bankruptcy
Section 6.2, 6.3, 6.4
Act or Law
Purpose and Function
Truth in Lending Act
Equal Credit Opportunity Act
Fair Credit Reporting Act
Consumer Credit Reporting
Reform
Fair Debt Collections Practices
(together)
What is the difference between closed-end credit (installment credit) and open-ended credit
(revolving credit)?
Define Secured Loan
Define Collateral
Define APR (Annual Percent Rate)
Define Grace Period
According to the Consumer Credit Protection Act, how much are you legally required to pay if
someone uses your credit card illegally?
How will you plan to stay out of debt?
Think through the process of obtaining a loan. As you read through Chapter 6, many factors
affect how much a loan will cost you. Some of these factors are listed below. For each factor,
determine whether it would drive the overall cost of loan up or down. Put those items which
will make a loan expensive on the “Up” arrow and those factors which are would make a loan
less expensive on the “Down” arrow.
Place the follow items next to the appropriate arrow.
borrowing from family member
borrowing from credit union
high APR
collateral
large down payment
shorter term
simple interest on declining balance
making minimum monthly payments
borrowing from retail stores
borrowing from finance companies
low APR
add-on interest
minimal down payment
longer term
simple interest