In 200 words or less, list three ways in which the Consumer Credit Protection Act (CCPA) protects consumers. Include one example of misleading advertising,

The fundamental federal laws that regulate credit are the Fair Credit Reporting Act[1], Equal Credit Opportunity Act[2], Fair Credit Billing Act[3], and Fair Debt Collection Practices Act[4].

Explanation:

Personal

The first way that CCPA protects consumers is by making it harder for lenders to garnish wages from the borrower. This act has limited their power by making them get a court order and meet other requirements before they can take money from the borrowers wages. This act also protects consumers by requiring the lender to disclose the total cost of a loan, how the interest rate is calculated, and any fees. The third way this act protects consumers is by prohibiting discrimination when applying for a loan. This means that lenders can not turn away your loan based on your race.

Plato/Edmentum Sample

The CCPA prohibits misleading and deceptive advertising by lenders. Deceptive advertising often works because a consumer is not familiar with the implications of financial terms and conditions, or proficient in financial calculations. For example, an advertisement for a credit card may state that purchases will be billed in monthly installments at an interest rate of 5%, while the fine print says the effective interest rate is 10%. Many customers may not read the fine print all; some might not understand what the “effective interest rate” means.

The CCPA mandates that companies reveal the total cost of a credit purchase, along with the calculations involved. This protects customers who may not realize—or be able to accurately calculate—how much something purchased on credit will cost them in real money.

The Act also places limits on the powers of lenders to deduct—without a court order, or without informing the customer—money from their bank account to settle a debt for which the customer has delayed payment.

Explanation:

the assumption the narrator makes in this excerpt is that the messages he heards were going to hurt the narrator's mom; the narrator just springs in to action. the narrator doesn't specify in this excerpt why he believes that the messages present a problem that requires protection.

correct, but each time you dont pay the price of the penalty can increase.