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The Consumer Credit Protection Act (CCPA)

The Consumer Credit Protection Act (CCPA) Summary​

The Consumer Credit Protection Act (CCPA) is a federal law that protects consumers from wage garnishment and requires creditors to disclose credit terms. 

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Wage garnishment protection 

  • Prevents employees from being fired for having their wages garnished for one debt

  • Limits the amount of an employee's earnings that can be garnished in a week

  • Applies to all employers and individuals who receive personal earnings

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Credit term disclosure

  • Ensures that consumers can compare and make informed use of credit 

  • Requires full disclosure of the terms and conditions of finance charges in credit transactions 

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Other CCPA provisions

  • Includes the Equal Credit Opportunity Act, which makes it illegal to discriminate against credit applicants based on race, sex, marital status, or age 

  • Includes the Electronic Fund Transfer Act (EFTA), which protects consumers when they transfer funds electronically 

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The CCPA applies in all 50 states, the District of Columbia, and all U.S. territories and possessions.

 

The U.S. Department of Labor's Wage and Hour Division administers the wage garnishment provisions of the CCPA. 

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