Consumer Credit Regulation: Illusion or Reality?

Fifteen years ago, retail installment sales financing was governed by common law. Problems with the situation resulted in the enactment of retail installment sales acts which involved a degree of disclosure. Confusion resulted, and in 1960, the Truth In Lending Act was proposed for commonality in disclosure. Since then, proscriptions have been increasingly federalized. Economic stabilization, sound credit practices, increased competition, bankruptcy effectiveness, consumer awareness, and privacy are reasons for credit legislation. Qualitative changes in consumer credit have been achieved by computer technology, the possible danger to privacy, activism of consumers, and the appearance of new business practices, e.g., EFTS. Criticism of consumer credit regulations includes the fact that disclosure is defeated if it comes at a time when it is impossible for consumers to exercise comparison and choice.