Your assignment is to prepare and submit a paper on consumer credit. Owing to the fact that there are potential challenges that may affect consumers while making transactions using consumer credits, various laws have been implemented to ensure that such challenges are prevented from occurring. In the United States, legal structures governing the use of consumer credits have been embodied in state as well as federal laws: Various states have passed regulatory frameworks that govern the use of consumer credits for instance. the application of the Uniform Consumer Credit Code that has been implemented in approximately 11 states. The main objective of this code is to protect consumers who intent to obtain credit cards for purposes of facilitating their transactions. Additionally, this code ensures that consumers are provided with enough credit and monitors the consumer credit sector as a whole.
In the year 1968, the Consumer Credit Protection Act was passed by the United States Congress, with a purpose of regulatory the credit sector. This act stipulates that credit service providers have to describe the terms of providing credit to their consumers before they acquire their services. There are also other acts that have been provided in the United States not only for purposes of handling consumer credit issues, but also handling and managing issues that may affecting credit card holders in due course as well as issues affecting transactions involving debit cards.