In response to literally thousands of consumer complaints, the federal government stepped in and now regulates the entire credit function. Because these are federal laws, they apply equally in all 50 states. The granting of credit is no longer a private matter between a business and its customer. Various federal laws now control many aspects of a company's credit policies. Ignorance of these laws is no excuse, and failure to comply with these laws can lead to stiff penalties.
Many states have legal requirements in addition to the basic federal statutes.
Because these requirements vary state by state, detailed coverage is impossible in a book of this size. However, this chapter will briefly discuss the operation of state usury laws-laws that establish a maximum interest rate on credit and lending transactions. You should consult a local attorney or a small business administration office for help in determining what local requirements governing credit may exist in your area. Inc. All rights reserved. Legal and copyright notice.