credit laws
truth in leading act(1968)
Requires businesses and financial institutions to disclose precise credit terms and costs.
what is credit policy?
written set of guidelines used by an organization to determine how many and witch customers will be approved for credit.
five's C's of banking
cash flow, capacity, capital, collerball, conditions,
fair credit billing act(1974)
Protects consumers from billing errors and provides outlets to challenge incorrect statement.
what is credit report?
record of credit history and financial behavior for a business or induvial.
what is bank financing?
banks provide two main types of business financing business loans and lines of credit.
Equal credit opportunity act(1974)
prohibits creditors from discriminating against as applicant on the basis of race, color ,religion ,national origin, gender, martial status, age, or whether the applicant receives public assistance as income.
what is credit bureau?
private firm that maintains consumer credit data and provides credit information to business for free
what is a business loan?
small money toward borrowed from a bank for a specific purpose
Fair debt collection practices act(1977)
establishes legal protection against abusive debt collection practices.
what is credit score?
numerical measure of loan applicant's creditworthiness at a particular point in time.
what do business loans carry over?
fixed interest rate.
credit card accountability responsibility and disclosure act(2009)
makes the rates and fees of credit cards more transparent and prohibits unfair practices related to credit card rates and fees.
what is credit risk?
potential of credit not being repaid.
what is the SMBA( small business administration?)
an agency of the federal government that assists small business wit financing.