What is the CCCFA?
When you borrow money, the Credit Contracts and Consumer Finance Act (CCCFA) Act ensures you are able to make informed choices, know what you’re agreeing to, and can keep track of your debts. The CCCFA requires lenders to act responsibly at all times. It provides protection when you: use a credit card.
What is the responsible lending code?
The responsible lending code (the code) elaborates on the lender responsibility principles and provides guidance as to how lenders can comply with the principles. The code includes guidance on the information and communications lenders should provide to borrowers and guarantors before and during the loan.
When did Cccfa come into force?
1 December 2021
Major changes to the Credit Contracts and Consumer Finance Act 2003 (CCCFA) will come into force from 1 December 2021.
What are two things that lenders must respect in regards to the borrower?
Lenders must provide a Truth in Lending (TIL) disclosure statement that includes information about the amount of your loan, the annual percentage rate (APR), finance charges (including application fees, late charges, prepayment penalties), a payment schedule and the total repayment amount over the lifetime of the loan.
How does consumer finance work?
The consumer is able to make purchases on a credit card but must pay the outstanding amount when it becomes due. If the consumer fails to settle the outstanding amount on the credit card, he/she would be charged interest until the amount is paid off.
What happens if you stop paying a loan?
If You Don’t Pay You’ll eventually default on that loan if you stop making payments. You’ll owe more money as penalties, fees, and interest charges build up on your account as a result. Your credit scores will also fall. But you do need to pay attention to legal documents and requirements to appear in court.
What are the 3 fair lending laws?
The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.
What are 3 rights that borrowers have?
Borrower’s Rights: Prepay any federal loan without penalty. Recieve grace periods and subsidies on certain loans. Use deferment or forebearance to postpone payments. Receive documentation of loan obligations, rights, and responsibilites, and when the loan in fully repaid.