Consumer Credit Protection Act

By: Chris Draws

Overview

The federal wage garnishment law, Consumer Credit Protection Act (CCPA), protects employees from discharge by their employers because their wages have been garnished for any one debt.

Origin

Used to be called the "'Consumer Credit Protection Act Of 1968". And was used to make the terms of loans more transparent to borrowers who weren't as well educated.

What has this act changed?

Now that this act is passed less educated people wont be swindled out by someone more educated then them when they go to apply for a loan. But since its update in 2009 this Act has also protected employees from being fired for having there payment garnished by the government for a debt they have.

What happend before this act?

Before this act was passed an number of things that were going on that were very unfair to the people they affected. First was that less educated people would be swindled out of there money by more educated people when they went to get a loan. Also if someone had there wages garnished by the government the employees had less job security and they were likely to be fired.

Who started this act?

There was no one incident in particular that moved this act into motion, just many many angry citizens that couldn't pay there loans or debts because they were either not informed of what they were getting themselves into or fired because of there debt.

Who is affected by this act?

Anyone who has a poor education or is ill informed on a loan they are thinking of purchasing is helped in this act because the business must inform them of all of the details of the loan. And also this helps anyone who's pay is being garnished because they have a debt is also helped though this act.