Federal Consumer Credit Protection Act--A Consumer Perspective
![handle is hein.journals/tndl45 and id is 183 raw text is: THE FEDERAL CONSUMER CREDIT PROTECTION ACT-
A CONSUMER PERSPECTIVE
William E. Boyd*
I. Introduction
Passage of the Consumer Credit Protection Act1 [CCPA] brought cries of
anguish from creditors and their representatives everywhere.2 Discernible amidst
complaints of unnecessary federal intervention into an area already adequately
regulated at the local level has been a more legitimate concern over the difficulty
of compliance.3 A look at the complex requirements of the statute and the
Federal Reserve Board's implementing regulation, regulation Z,4 quickly reveals
that this concern is more than justified.' In response, numerous articles,'
manuals, and seminars designed to guide creditors and counsel in the task of
compliance have appeared. It has been generally assumed, in part because of
the extensive publicity accompanying passage of the Act,9 and, in part, perhaps,
because of the reaction of creditors, that the benefits to consumers were obvious
and would be immediately realized. This article will evaluate that assumption,
identify some of the potential benefits that may inure to consumers, and suggest
ways in which those benefits might be realized.
A brief outline of the various components of the CCPA will suggest its
general scope. Title I, formally labeled Consumer Credit Cost Disclosure,
* Associate Professor of Law, University of Arizona College of Law. Member of the
Michigan and Arizona Bars.
1 Act of May 29, 1968, Pub. L. No. 90-321, 82 Stat. 146 (codified at 15 U.S.C. §§ 1601-
77, 18 U.S.C. §§ 891-96 (Supp. IV, 1965-68)).
2 See, e.g., Wall Street Journal, July 11, 1969, at 32, col. 1.
3 See, e.g., Kintner, Henneberger & Neill, A Primer on Truth In Lending, 13 ST. Louis
U.L.J. 501 (1969).
4 34 Fed. Reg. 2002 (1969). The Board has authority to implement Title I by such
regulations as it should deem necessary or proper to effectuate the purposes of that title.
15 U.S.C. § 1604 (Supp. IV, 1965-68). References to the Act or the CCPA should be
deemed to include the relevant sections of regulation Z.
5 See, e.g., FRB Reg. Z §§ 226.4-.6, 34 Fed. Reg. 2004-6 (1969). These sections deal
respectively with determining the finance charge, determining the annual percentage rate, and
general disclosure requirements, all of which must be mastered before one even attempts to
comply with the sections setting forth the specific disclosure requirements for open end credit
transactions and other than open end credit transactions. Id. §§ 226.7-.8, at 2006-07. In
addition, difficulties may be encountered with definitions. See, e.g., §§ 226.2(f), (k), (m)-(n),
all of which must be considered in deciding whether a particular creditor and extension of
credit are subject to the requirements of Title I.
6 E.g., Bluhm, Truth In Lending Act Analyzed (pts. 1-2), 40 CLEv. B.J. 28, 60 (1968-
1969); Kintner, Henneberger & Neill, supra note 3.
7 E.g., FEDERAL REszRvE BOARD, WHAT You OUGHT To KNOW ABOUT TRUTH IN
LENDING (1969); R. JOHNSON, R. JORDAN, & W. WARREN, MANUAL ON THE FEDERAL TRUT1-
SN-LENDING LAw (1969) [hereinafter cited as TRUTH-IN-LENDING MANUAL).
8 A great number of seminars emphasizing compliance with the Act have been held,
including Truth-In-Lending Problems, Arizona Law Institute, Sept. 25 and Oct. 2, 1969; Sem-
inar on Truth-In-Lending, Continuing Legal Education Program of the Arkansas Bar Associa-
tion and University of Arkansas School of Law, June 27, 1969; Truth-In-Lending, Illinois
Institute for Continuing Legal Education, Nov. 1, 7, 8, 1969.
9 E.g., The Truth about Credit is Coming, 33 CONSUMER REPORTS 428.](ViewImageLocal?handle=hein.journals/tndl45&div=22&collection=&method=preview&ext=.png&size=3)
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