Disclosure

• In 2000, U.S. Sen. Charles Schumer, D-N.Y., was responsible for getting the "Schumer's Box" Law into effect. Pursuant to the law, certain information must be disclosed to a credit card applicant and user. These items include the annual fee, if any, the annual percentage rate of the card for purchases, balance transfers and cash advances, the finance fees, late fees, grace period and any other fees. All financial institutions that place a credit card into the stream of commerce must abide with this law.
  
  

Truth in Lending Act

• Another significant credit card transaction law is the Truth in Lending Act. This law was designed to minimize consumer fraud and requires the disclosure of certain information by financial institutions that offer credit cards. Additionally, the act applies to any entity that extends credit to be used by a person for personal and household uses. Also, the act applies to entities offering credit where the credit is subject to a finance charge or is payable in more than four installments pursuant to agreement. However, any credit activity involving amounts greater than $25,000 do not fall within the parameters of the act. Finally, the act applies to advertising of credit cards and requires that any advertising contain truthful statements.
  
  

Equal Credit Opportunity Act

• Another law applicable to credit card transactions is the Equal Credit Opportunity Act, or "ECOA." Pursuant to the ECOA, it is illegal for an entity extending credit to deny an applicant based upon the applicant's sex, race, color, national origin, creed, age, marital status, religion or if the applicant receives public assistance. alimony, child support or retirement benefits.
  
  

Fair Credit Billing Act

• Another law that is used in connection with credit card transactions is the Fair Credit Billing Act. This law applies to open-ended credit transactions and applies mostly to issues where a mistake has been made in a bill. Pursuant to the act, a credit card holder has 60 days to notify the financial institution of an error in writing and the institution must take action within 30 days from receipt of the letter. Furthermore, the act contains regulations regarding how the matter must be resolved and when the creditor can report nonpayment to a credit reporting service.
  
  

Right to Financial Privacy Act

• Another credit card transaction law is the Right to Financial Privacy Act. This act was designed to protect the credit card customer from having his financial and personal information divulged. Pursuant to the act, the information cannot be provided unless the person has specifically authorized the disclosure or if the information is sought pursuant to judicial process, such as a subpoena or warrant.