Online Lenders Comply With The 19 Federal Laws Below
1. Servicemembers Civil Relief Act (1940)
This law limits interest rates and charges assessable on military personnel and their dependents.
2. Specially Designated Nationals List of the U.S. Department of Treasury Office of Foreign Asset Control (1950)
U.S. persons are prohibited from doing business with persons and organizations on the list.
3. Truth-in-Lending Act (1968)
This law requires the disclosure of credit terms in consumer credit transactions.
4. Fair Credit Reporting Act (1970)
This law restricts the sharing of non-public personal information with unaffiliated third parties and requires care in the disposal of consumer information.
5. Bank Secrecy Act of 1970 (a.k.a. the Currency and Foreign Transactions Reporting Act)
This legislation requires U.S. financial institutions to collaborate with the U.S. government in cases of suspected money laundering and fraud.
6. NACHA (previously known as the National Automated Clearinghouse) Association Operating Rules and Guidelines (1974)
NACHA creates broadly adopted payment rules and standards for direct consumer, business, and government payments.
7. Equal Credit Opportunity Act (1974)
This law bars discrimination in consumer credit transactions based on gender, age, marital status, ethnicity, national origin, religious preferences, or receipt of public assistance income.
8. Fair Credit Billing Act (1975)
This law seeks to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in “open end” credit accounts.
9. Fair Debt Collection Practices Act (1977)
This law seeks to eliminate abusive practices in the collection of consumers’ debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information to ensure the information’s accuracy.
10. Electronic Funds Transfer Act (1978)
This law provides a basic framework to establish the rights, liabilities, and responsibilities of participants in electronic fund remittance transfer systems.
11. Telephone Consumer Protection Act (1991)
This law restricts telemarketing communications via voice calls, SMS texts, and fax.
12. Gramm-Leach-Bliley Financial Services Modernization Act of 1999 (a.k.a., GLBA) (1999)
Enforced by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau, this law created privacy rights and requires privacy notices to the consumer.
13. FTC Privacy Rule (2001)
This rule explains and implements provisions of GLBA privacy rights.
14. USA Patriot Act (2001)
Applicable to all credit lenders, this law, among other provisions, allows the FBI to search financial records without a court order.
15. FTC Safeguards Rule (2003)
This rule explains and implements provisions of GLBA safeguards for consumers’ non-public personal information.
16. Bankruptcy Abuse Prevention and Consumer Prevention Act (2005)
This law implements an income/expense screening mechanism intended to ensure that debtors repay creditors to the maximum extent they can afford.
17. FTC Consumer Information Disposal Rule (2005)
This rule implements the 2003 Fair and Accurate Credit Transactions Act amendments to the Fair Credit Reporting Act on the disposal of consumer information.
18. Dodd-Frank Wall Street Reform and Consumer Protection Act (2010)
This law promotes the financial stability of the United States by improving accountability and transparency in the financial system and to protect consumers from abusive financial services practices. Established the Consumer Financial Protection Bureau, which has supervisory authority on the banking industry, especially on Ability to Pay.
19. Internal Revenue Service Form 8300 (2012)
This form provides the IRS and the U.S. Department of Treasury Financial Crimes Enforcement Network with a tangible record of large cash transactions (greater than $10,000).