The consumer protection laws in the financial regulations of the government controls and monitors the activities of financial institutions to prevent consumer exploitation. Each consumer protection act in financial regulations is limited by the omissions. Here are some of the consumer protection acts in financial regulations that you should know.
The 1968 consumer credit protection act was passed by Congress to protect consumers and their financial records from being abused. More laws have been laid down that stipulates the government’s procedure when it needs information from the bank about a customer, how the bank should handle the deposits of customers and how the bank should manage the borrowers. The government has been forced to formulate more laws that control the limit that one should gather data about the financial history of another person and things they should do and not do with the data because data theft by cybercriminals, underground and legal market for data and data analytics is growing rapidly.
The financial privacy act was passed in 1978 by Congress to restrict the extent to which the government can access your personal financial records. The verdict in the Supreme Court of the United States v. Miller in 1978 declared that the records of the consumer of a bank are not subject to constitutional privacy protection; thus the Congress reacted to this ruling by passing the right to financial privacy act to protect the confidentiality of personal financial records.
Government officials cannot gain access to personal financial records if they lack a written consent, a search warrant or a subpoena as required by the financial privacy act. The applies to the federal government and its agents, officers, agencies and departments alone but not the local or state governments. The account holder should be mailed a notification by the investigators, and they should wait for a response for 10-14 days after that date of mailing before they start an authorized search. The act protects partnerships of five or less than five members and individuals and excludes companies and large groups like labor unions and trade associations. This law governs institutions like money-order issuers, depository institutions such as banks, the U.S. postal service, securities and futures brokerages, thrifts and credit unions, travelers’ check issuers, commodity trading advisors, casinos and card clubs.
Credit practices rule was implemented by Federal Reserve Board in 1985 to protect the rights of consumers who have debts. The act examines issues that are related to consumer credit contracts with lenders such as department stores, car dealers, and financing companies. The act is concerned with houseboats and mobile homes but not bank loans, agreements with loan associations, or real estate purchases.