When we talk about consumer credit, we are talking about using credit to finance transactions without having to pay the full amount of the goods at checkout. The most common form of consumer credit is a credit card issued by a financial institution. Merchants can also provide financing for the products they sell. Banks can directly finance purchases through loans and mortgages. This type of consumer credit is often used for cars, homes, and other large purchases. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Consumer credit law is primarily incorporated into federal and state statutory laws. These laws protect consumers and provide guidelines for the credit industry. There are many different laws that protect both the lender and the borrower when it comes to obtaining credit from consumers. States have passed various laws regulating consumer credit. The Uniform Consumer Credit Code (http://www.law.cornell.edu/uniform/vol7.html#concc) has been adopted in eleven states and Guam. Its purpose is to protect consumers who obtain credit to finance their transactions, ensure that adequate credit is provided, and govern the credit industry generally. Congress passed the Consumer Credit Protection Act in part to regulate the consumer credit industry. Requires creditors to disclose credit terms to consumers. The Consumer Credit Protection Act also protects consumers from loan sharks, limits wage garnishment, and established the National Commission on Consumer Finance to investigate the consumer credit industry. Credit card companies and credit reporting agencies are also regulated by law. The law also prohibits discrimination based on sex or marital status in the granting of credit. The law also regulates some debt collectors and has rules about what they can and cannot do when trying to collect a debt. Let's face it, we have to get credit. We may not need it for everyday things like groceries and toiletries, but if we want to own a car or house, it is necessary as not all consumers can pay for such high cost items in cash, making it mandatory obtaining credit. From credit counseling agencies to credit card companies and lenders, consumer credit is a multi-billion dollar industry. Since we need lines of credit to get some important things in our life, it is good that legislators realize that it is necessary to have consumer credit laws so that abuse of the system does not occur. Please note: This is just an example Get a custom paper from our expert writers now. Get a Custom Essay The everyday consumer has at least one open line of credit, but the average in the United States shows that we have at least four or five lines of credit in some way, shape, or form. As a consumer, you need to use your credit lines wisely and pay your installments on time. If you don't, you will end up with a bad credit rating and bad credit report. Consumer credit can work for you or against you – it's all up to YOU!