Consumer Protection Acts in Financial Regulations that You Should Know
The government enacts consumer protection laws in its financial regulations to keep the activities of financial institutions in check so that consumers are not exploited. Each consumer protection act in financial regulations is limited by the omissions. These are the consumer protection acts in financial regulations that you should be educated on.
The 1968 consumer credit protection act was passed by Congress to protect consumers and their financial records from being abused. More laws have been set later on that clarify how the government should get information from the bank about a customer, how the bank should manage deposits of its customers and the relationship that the bank should have with borrowers. An increase in data theft by cybercriminals, the expansion of underground and legal market for data and growth of data analytics has led to more federal laws to be made to curb the extent of financial history data of another person that one should collect and ways they should use the data.
There are boundaries that the government should not go beyond when accessing your personal financial records because the right to financial privacy act protects you. The Congress moved this act to protect the confidentiality of personal financial records after the 1978 judgment in the Supreme Court of the United States v. Miller stated that the records of the consumer of a bank are not subject to constitutional privacy protection.
Without written consent, a search warrant or a subpoena, government officials should be denied access to personal financial records. The local or state governments are not affected by this law for it governs the federal government and its agents, officers, agencies, and departments alone. Before an authorized search begins, the account holder should be notified by the investigators and they should wait for the response for 10-14 days from the date they mailed a notice to the account holder. Companies and large groups like labor unions and trade associations are not included in this law for it only protects partnerships of five or less than five members and individuals alone. The act applies to assortment of 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.
Federal Reserve Board in 1985 adopted the credit practices rule to protect the consumers who were in debt. 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.