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. Here are some of the consumer protection acts in financial regulations that you should know.
The consumers and their financial records are protected from abuse by the consumer credit protection act that was moved by the Congress in 1968. 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 government cannot access your personal financial records beyond a specified limit as defined by the right to financial privacy act. 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.
The financial privacy act requires that government officials should get a search warrant, consent in written or a subpoena for them to access 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. It does not take into consideration the bank loans, contracts with loan associations, or real estate purchases but it covers houseboats and mobile homes.