All lenders are required to abide by certain laws. Once you sign your loan agreement and begin the repayment process, you are protected by these laws and other regulations. Questions regarding these laws should be directed to a legal professional.

The federal government has created regulations for lenders to protect against unfair practices. According to the Truth in Lending Act, details of all loan agreements must be provided in written form and must display the exact rates, fees, late fees, rollover charges, and all other details of the loan. The terms offered by the lender must conform also to all applicable state regulations based on your state of residence.

Under the Dodd-Frank Wall Street Reform Act, every lender must practice ‘fair lending.’ Lenders cannot discriminate against anyone, but must offer equitable, fair access to loans. This act also gives the Consumer Financial Protection Bureau the power to enforce these regulations.

You are also protected by the Fair Debt Collection Practice Act (FDCPA) which requires lenders to follow certain practices. This act prohibits actions including, but not limited to:

  • Unpermitted threats of legal action and jail time
  • The use of abusive and/ or threatening language
  • Providing false information about themselves, you, or your debt
  • No phone contact before 8AM or after 9PM, unless you agree otherwise