The Consumer Credit Protection Act

The Truth in Lending Act

What is the Federal Consumer Credit Protection Act?

The Consumer Credit Protection Act (CCPA) is a law that protects employees from being laid-off due to their wages being garnished for any of their debts. The CCPA also limits the earnings of employees that have been garnished in any week. This act was administered by the Department of Labor's Wage and Hour Division (WHD).

When was the CCPA Passed?

The act was enacted on May 29, 1968 and was known as the Truth in Lending Act which restricted wage garnishment. The act was effective on May 29, 1969: exactly one year after it was enacted.

Why was the Act Passed?

The act was passed due to the discrimination against a specific applicant. Mainly, discriminating someone of their debt problems. Before this, many employers were not employing someone due to their credit and debt.

There was no specific incident that caused this law to be enacted; but many people were not being hired due to their credit. To end this discrimination, the law was enacted.

Who does this Act Affect and Who Does it Help?

This act affects employers, but benefits people with bad credit and debt problems with finding jobs. So now, credit is not a discriminating factor in applying for a job.

Why did these Injustices occur?

Businesses that see a bad credit look at other businesses that employed someone which shows why that business doesn't have high standards.