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FEDERAL RESERVE BANK
OF NEW YORK

li/U •loo
January 12, 1979

NEW CONSUMER PA M PH LET AND HANDBOOK

To the Chief Executive Officer of Each Member Bank
in the Second Federal Reserve District , and Others Concerned:

Enclosed is a new consumer pamphlet, entitled “If You Use A Credit Card,” and a new
booklet, “Consumer Handbook to Credit Protection Laws,” both issued by the Board of
Governors of the Federal Reserve System.
The pamphlet explains the protection that users of credit cards enjoy under Federal
law, including how to limit risk if a card is stolen or lost and what to do if goods and services
purchased with a credit card are not satisfactory. It also shows how to compare credit costs.
The consumer protection handbook explains rights under consumer credit protection
laws and how borrowers can apply these rights when using credit. This 46-page booklet
offers a comprehensive discussion of the various regulations pertaining to consumer credit.
Additional copies of the pamphlet and the handbook are available, without charge,
from our Public Information Department.

P au l A. V olcker,

President.

1. T h e A n n u a l Percentage

percentage cost of credit. It’s yo
regardless of the amount of ere
to repay it.

2. T h e M e th o d o f Cah
C h a rg e. Creditors use variou;

balance on your credit card acc
finance charges. Some credito
after subtracting your payments
is called the a d ju ste d -b a la n c e
give you no credit for paymen
period. This is called the prei
Under a third method — the
m e th o d — creditors add your
the billing period and then divt
in the billing period. Under thi;
made during the billing period i
to the daily balance. Here’s a s<
billing systems.

ADJUSTED
BALANCE

YOU USE A
CREDIT
CARD

Monthly
rate

1 - 1/ 2 %

APR

18%

Previous
balance

$400

Payments

$300

Finance
charge

$1.50
( 1 - 1/ 2 % x
$ 100)

As the example shows, the
considerably for the same patt<
ments on a credit card accour
the same, the amount of the fi
how the creditor treats paymen

3.
W h e n F in a n ce C har
to Y o u r C red it A c c o u n t . Ho

to pay your bills before a finam
creditors, for example, give yo
pay your balance in full before i
If you go beyond the due dat
charge.

If you use a credit card — and today most families have
at least one — you should know about your protections
under Federal law,
— How to limit your risk if your card is lost.
— What you can do if goods you buy with a credit
card are unsatisfactory.
— How to figure out and compare credit card charges.

CD Unsolicited Credit Cards
It is illegal for a card issuer to send you a credit card
unless you ask or apply for one. However, a card issuer
may send you, without your request, a new card to re
place an expired one. You may also be sent an applica
tion for a card in the mail or be asked to apply by phone.

( ) Lost or Stolen Credit Cards
Your risk on lost or stolen credit cards is limited.
You do not have to pay for any unauthorized charges
made after you notify the card company of loss or theft
of your card. So keep a list of your credit card numbers
and notify card issuers immediately if your card is lost or
stolen. The most you will have to pay for unauthorized
charges is $50 on each card — even if someone runs up
several hundred dollars worth of charges before you re
port a card missing.

CD Defective Goods or Services
You may withhold payment on any damaged or
shoddy goods or unsatisfactory services purchased with a
credit card, as long as you have made an effort to solve
the problem with the merchant.
This right is limited if the card was a bank or travel and
entertainment card or any card not issued by the store
where you made your purchase. In such cases, the sale:

important that you get your bills, and get credit for paying
them, promptly. Check your statements to make sure
your creditor follows these rules:
— Prompt billing. Look at the date on the postmark. If
your account is one on which no finance charge is
added before a certain due date, then creditors
must mail their statements at least 14 days before
payment is due.
— Prompt crediting. Look at the payment date en
tered on the statement. In most cases creditors must
credit payments on the day received.

CD Refunds for Overpayments
If you overpay on your credit card account by $1.00 or
more, a creditor must give you a refund at your request.
Overpayments can occur when, for example, you over
look a return of merchandise to be credited to your
account.

CD Discounts for Cash Payments
It is illegal for credit card companies to prohibit stores
from offering discounts to people who pay by cash or
check. Stores that do offer cash discounts must make this
fact clear to all buyers. They may not add an extra charge
(above the regular price) for those customers choosing to
use credit cards.
For example, suppose you want to buy an item regu
larly priced at $50. The store offers discounts for cash of 5
per cent. If you pay in cash, your price should be:
$50.00
- 2 50 (5% of $50)
$47.50

CD Prompt Credit for Payments
If you can avoid finance charges on your credit card
account by paying within a certain time, it is obviously

2. The Method of Calculating the Finance
Charge. Creditors use various systems to arrive at the
balance on your credit card account on which they assess
finance charges. Some creditors assess finance charges
after subtracting your payments for the billing period. This
is called the adjusted-balance method. Other creditors
give you no credit for payments made during the billing
period. This is called the previous-balance method.
Under a third method — the average daily-balance
method — creditors add your balances for each day in
the billing period and then divide by the number of days
in the billing period. Under this method, your purchases
made during the billing period may or may not be added
to the daily balance. Here’s a sample of three credit card
billing systems.

ADJUSTED
BALANCE

PREVIOUS
BALANCE

AVERAGE
DAILY
BALANCE

1-1/2%

APR

18%

Previous
balance

$400

Payments

$300

$300 on
15th day

Monthly
rate

Finance
charge

$ 1.50

$ 6.00

$ 3.75

(1-1/2% x
$100)

(1-1/2% x
$400)

(1-1/2% x
average balance
of $250)

If you use a credit card, the price is $50.

CD Credit Card Costs

— must have been for more than $50; and
— must have taken place in your home State or within
100 miles of your home address.

1. The Annual Percentage Rate (APR). This is the
percentage cost of credit. It’s your key to comparing costs
regardless of the amount of credit or how long you have
to repay it.

A credit card is an easy way to “buy now, pay later.”
But it is a form of borrowing, and in many cases a finance
charge will be added to your bill each month on the
money you still owe.
How much you pay for the use of a credit card d e
pends on three important terms of the credit card ar
rangement, which differ for cards issued by banks, by re
tail stores, or for travel and entertainment. Creditors must
tell you:

As the example shows, the finance charge may vary
considerably for the same pattern of purchases and pay
ments on a credit card account. Even when the APR is
the same, the amount of the finance charge depends on
how the creditor treats payments.
3.
When Finance Charges Begin to be Charged
to Your Credit Account. How much time do you have
to pay your bills before a finance charge is added? Some
creditors, for example, give you a 30-day “free ride” to
pay your balance in full before imposing a finance charge.
If you go beyond the due date, you will pay a finance
charge.

Some creditors also charge a flat annual membership
fee for use of their card.
Federal law does not set rates or tell the creditor how to
calculate finance charges — it requires only that the
creditor tell you the method. Be sure to ask for an expla
nation of any terms you d on ’t understand.

( ) Tips on Credit Cards
— Shop around for the best terms. Remember that
finance charges may differ depending on the
method the creditor uses to assess them.
— Make sure you understand all the terms of your
credit card agreement before you sign.
— Pay bills promptly to keep up your good credit
rating and to avoid high finance charges.
— Keep a list of all your credit card numbers in case of
loss or theft, and keep a good record of your pur
chases and payments.

Board of Governors of the Federal Reserve System
Washington, D.C. 20551
December 1978

C O N S U M ER

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prola w s

CONTENTS

Page
IN T R O D U C T IO N ................................................................................................

THE C O S T OF C R E D IT .....................................................................................

Shopping is the First S t e p .............................................................................
What Laws A p p ly ? .......................................................................................
The Finance Charge and Annual Percentage Rate ( A P R ) ..........................
A C om p arison ..............................................................................................
Cost of Open-end Credit .............................................................................
Leasing Costs and T e r m s .............................................................................
Open-end Leases and Balloon P a y m e n ts ...................................................
Advertising ..................................................................................................
Costs of Settlement on a H o u s e ..................................................................

5
5
6
7
8
10
11
12
12

A P P L Y IN G FOR CREDIT

.................................................................................

The Old Story of Discrimination..................................................................
What Law A p p lie s ? .....................................................................................
What Creditors Look For ...........................................................................
Information the Creditor Can’t U s e ..............................................................
Special R u le s ................................................................................................
Discrimination Against W om en ..................................................................
If Y o u ’re Turned Down ...............................................................................

13
13
14
15
16
19
23

CREDIT HISTORIES A N D RECORDS

Building Up a Good R e c o r d ......................................................................... 24
What Laws A p p ly ? ........................................................................................ 25
Credit Histories for W o m e n ......................................................................... 26
Keeping Up Credit R e c o r d s ......................................................................... 27
C O R RE CTING CREDIT M IS T A K E S ..................................................................... 29
What Laws A p p ly ? ........................................................................................
Billing E r r o r s ................................................................................................
Defective Goods or Services.........................................................................
Prompt Credit for Payments and Refunds for Overpayments ...................
Cancelling a Second M o rtga ge .....................................................................
Lost or Stolen Credit C a r d s .........................................................................
Unsolicited C a rd s..........................................................................................
Discounts for Cash Paym en ts.......................................................................

29
29
33
33
34
35
36
36

C O M PL A IN IN G A B O U T C R E D I T .....................................................................

Complaining to Federal Enforcement Agencies .........................................
Penalties Under the L a w s .............................................................................

37
38

G L O S S A R Y .........................................................................................................

SUBJECT INDEX

The Consumer Credit Protection Act of 1968 — which launched Truth in
Lending — was a landmark piece of legislation. For the first time, creditors were
required to state the costs of borrowing in a common language so that you — the
customer — could figure out exactly what charges would be, compare costs, and
shop for credit.
Since 1968, credit protections have multiplied rapidly. The concepts of “fair”
and “equal” credit have been written into laws that outlaw discrimination in credit
transactions; require that consumers be told the reason when credit is denied; give
borrowers access to their credit records; and set up a method to settle billing
disputes.
Each of these laws was intended to rem ove some of the problems and con
fusion from consumer credit which, as it became more widely used in our economy,
also grew more complex. Together, these laws set a standard for how individuals
are to be treated in their daily credit dealings.
The laws say, for instance:
— that you can no longer be refused a credit card just because you’re a
single woman;
— that you can limit your risk if a credit card is lost or stolen;
— that you can straighten out errors in your monthly bill without damage
to your credit rating;
— and that you won’t find credit shut off just because you’ve reached the
age of 65.

INTRODUCTION

But, let the buyer be aware! It is important to know your rights and how to use
them. This handbook explains how the consumer credit laws can help you shop for
credit, apply for it, keep up your credit standing, and — if need be — complain
about an unfair deal. It explains what you should look for when using credit and
what creditors look for before extending it. It also points out the laws’ solutions to
discriminatory practices that have made it difficult for women and minorities to get
credit in the past.

Board of Governors of the
Federal Reserve System
December 1978

THE COST OF
CREDIT

Y ou get credit by promising to pay in the future for something you receive in
the present.
Credit is a convenience. It lets you charge a meal on your credit card, pay for
an appliance on the instalment plan, take out a loan to buy a house, or pay for
schooling or vacations. With credit, you can enjoy your purchase while you’re
paying for it—or you can make a purchase when you’re lacking ready cash.
But there are strings attached to credit too. It usually costs something. And of
course what is borrowed must be paid back.
If you are thinking of borrowing or opening a credit account, your first step
should be to figure out how much it will cost you and whether you can afford it.
Then you should shop around for the best terms.

These laws can help you compare costs:
TR U TH IN LEND ING requires creditors to give you certain basic infor
mation about the cost of buying on credit. These “ disclosures” can help
you shop around for the best deal.

Shopping is the
First Step

What Laws Apply?

TR U TH IN LE AS IN G disclosures can help you compare the cost and
terms of one lease with another and with the cost and terms of buying for
cash or on credit.

The Finance Charge
and Annual Percentage
Rate (APR)

Credit costs vary. By remembering two terms, you can compare credit prices
from different sources. Under Truth in Lending, the creditor must tell you — in
writing and before you sign any agreement — the finance charge and the annual
percentage rate.
The finance charge is the total dollar amount you pay to use credit. It in
cludes interest costs, and sometimes other costs, such as service charges, some
credit-related insurance premiums or appraisal fees.
For example, borrowing $100 for a year might cost you $7 in interest. If
there were also a service charge of $1, the finance charge would be $8.
The annual percentage rate (APR ) is the percentage cost (or relative cost)
of credit on a yearly basis. This is your key to comparing costs, regardless of the
amount of credit or how long^you have to repay it:
Again, suppose you borrow $100 for one year and pay a finance charge
of $8.
If you can keep the entire $100 for the whole year and then pay it all
back at once, you are paying an A P R of 8 per cent.

But, if you repay the $100 and finance charge (a total of $108) in twelve
equal monthly instalments of $9 each, you don’t really get to use $100
for the whole year. In fact, you get to use less and less of that $100 each

month. In this case the $8 charge for credit amounts to an A P R of 14.5
per cent.
All creditors — banks, stores, car dealers, credit-card companies, finance
companies — must state the cost of their credit in terms of the finance charge and
the APR. The law says these two pieces of information must be shown to you be
fore you sign a credit contract. Federal law does not set interest rates or other credit
charges. But it does require their disclosure so that you can compare credit costs.

Even when you understand the terms a creditor is offering, it’s easy to under
estimate the difference in dollars that different terms can make. Suppose you’re
buying a $5,000 car. Y ou put $1,000 down, and need to borrow $4,000. Compare
these three credit arrangements:

APR
CREDITO R A
CREDITOR B
CREDITOR C

11%
11%

12%

Length
of Loan

Monthly
payment

Total Finance
Charge

Total
Cost

3 years
4 years
4 years

$131

$ 716
$ 962
$1,056

$4,716

$103
$105

$4,962
$5,056

H ow do these choices stack up? The answer depends partly on what you
need.

A Comparison

The lowest cost loan is available from Creditor A.
But if you were looking for lower monthly payments, you could get them
by paying the loan off over a longer period of time. However, you would have to
pay more in total costs. A loan from Creditor B — also at an 11 per cent APR , but
for four years — will add almost $250 to your finance charge.
If that four-year loan were available only from Creditor C, the A P R of 12 per
cent would add another $94 to your finance charges as compared with Creditor B.
Other terms — such as the size of the down payment — will also make a dif
ference. Be sure to look at all the terms before you make your choice.

Cost of Open-end
Credit

Open-end credit includes credit cards, department store “charge plates,” and
check-overdraft accounts that allow you to write checks for more than your actual
balance with the bank. Open-end credit can be used again and again, generally until
you reach a certain pre-arranged borrowing limit. Truth in Lending requires that
open-end creditors let you know these two terms that will affect your costs:
First, creditors must tell you the method of calculating the
finance charge. Creditors use a number of different systems to calculate the
balance on which they assess finance charges. Som e creditors add finance charges
after subtracting payments made during the billing period. This is called the ad
justed balance method. Other creditors give you no credit for payments made
during the billing period. This is called the previous balance method. Under a
third method — the average daily balance method — creditors add your

balances for each day in the billing period and then divide by the number of days
in the billing period.
H ere’s a sample of three billing systems:
ADJUSTED
BALANCE

Monthly Interest Rate
Previous Balance
Payments

Interest Charge

1V2%
$400
$300

PREVIOUS
BALANCE
V/2 %

$400
$300

AVERAGE DAILY
BALANCE

1V2%
$400
$300 (payment on
15th day)

$1.50

$6.00

$3.75

($100 x 1.5%)

($400 x 1.5%)

(average balance of
$250 x 1.5%)

As the example shows, the finance charge varies considerably for the same
pattern of purchases and payments.
Second, creditors must tell you when finance charges begin on your
credit account, so you know how much time you have to pay your bills before a

finance charge is added. Some creditors, for example, give you a 30 day “free ride”
to pay your balance in full before imposing a finance charge.
Truth in Lending does not set the rates or tell the creditor how to make interest
calculations — it only requires that the creditor tell you the method that will be used.
You have the right to ask for an explanation of any terms you don’t understand.

Leasing Costs and
Terms

Leasing gives you temporary use of property in return for periodic payments. It
has become a popular alternative to buying — under certain circumstances. For in
stance, you might consider leasing furniture for an apartment you’ll use only for a
year. The Truth in Leasing law requires leasing companies to give you the facts
about the costs and terms of their contracts, to help you decide whether leasing is a
good idea.
The law applies to personal property leased to you for more than four
months for personal, family, or household use. It covers, for example, long
term rentals of cars, furniture, and appliances, but not daily car rentals or leases for
apartments.
Before you agree to a lease, the leasing company must give you a written
statement of costs, including the amount of any security deposit, the amount of
your monthly payments, and the amount you must pay for license, registration,
taxes, and maintenance.
The company must also give you a written statement about terms, including
any insurance you need, any guarantees, information about who is responsible for

servicing the property, standards for its wear and tear, and whether or not you have
an option to buy the property.
Your costs will depend on whether you choose an “open end” lease or a
“ closed end” lease. Open end leases usually offer lower monthly payments than
closed end leases, but you may owe a large extra payment — called a “balloon
payment” — based on the value of the property when you return it.

Open-end Leases and
Balloon Payments

Suppose you lease a car under a 3-year open end lease. The leasing
company estimates the car will be worth $2,000 after 3 years of normal
use. If you bring back the car in a condition that makes it worth only
$1500, you may owe a balloon payment of $500.
The leasing company must tell you whether you may owe a balloon payment
and how it will be calculated. You should also know that:
— you have the right to an independent appraisal of the property’s worth
at the end of the lease. You must pay the appraiser’s fee, however.
— the law usually limits a balloon payment to no more than three
times the average monthly payment. If your monthly payment
is $100, your balloon payment can’t be more than $300 — unless, for
example, the property has received more than average wear and tear
(for instance, if you drove a car more than average mileage).

Closed end leases usually have a higher monthly payment than open end
leases, but there is no balloon payment at the end of the lease.

Advertising

Both Truth in Lending and Truth in Leasing require accurate advertising of
terms. These laws say that if a business mentions one important feature of a credit
sale or lease — such as the downpayment — it must also state the A P R and other
important terms — such as the number, amount, and schedule of repayments. An
ad reading “ Only $2 down,” for example, must also state that you will have to pay
$10 a week for the next two years. An ad must also specify if a leasing arrangement
is involved.

Costs of Settlement
on a House

A house is probably the single largest credit purchase for most consumers —
and one of the most complicated. The Real Estate Settlement Procedures Act, like
Truth in Lending, is a disclosure law. The Act, administered by the Department of
Housing and Urban Development, requires the lender to give you, in advance,
certain information about the costs you will pay when you actually get the deed to
the property. This event is called settlement, and the law helps you shop for lower
settlement costs. T o find out more about it, you may write to: Assistant Secretary for
Consumer Affairs and Regulatory Functions, Attention: R E S P A Office, US/HUD,
451-7th Street, S.W., Room 4100, Washington, D.C. 20410.

A P P L Y IN G FOR
CREDIT

H ere’s the old story: Mary and John Jones, whose joint income is more than
enough to make payments on their dream house, are turned down for a mortgage
loan. The lender says Mary might become pregnant and leave her job.
That’s illegal now. It’s illegal even to discourage the Joneses from applying for
a loan just because Mary is of child-bearing age. And Mary’s income must be
counted fully by a lender.
When you’re ready to apply for credit, you should know what creditors think is
important in deciding whether you’re creditworthy. You should also know what
they cannot legally consider in their decisions.

The law makes sure the creditor will be fair:
THE E Q U A L CREDIT O P P O R T U N IT Y A C T starts all credit applicants
off on the same footing. It says that race, color, age, sex, marital status —
and certain other factors — may not be used to discriminate against you
in any part of a credit dealing.

The O ld Story of
Discrimination

What Law Applies?

W hat Creditors
Look For

The Three C ’s. Creditors look for an ability to repay debt and a willingness
to do so — and sometimes for a little extra security to protect their loans. They
speak of the three C ’s of credit — capacity, character, and collateral.

Capacity

Can you repay the debt? Creditors ask for em ploy
ment information: your occupation, how long you’ve
worked, how much you earn. They also want to
know your expenses: how many dependents you
have, or whether you pay alimony or child support.

Character

Will you repay the debt? Creditors will look at your
credit history (see chapter on Credit Histories and
Records): how much you owe, how often you bor
row, whether you pay bills on time, and whether you
live within your means. They also look for signs of
stability: how long you’ve lived at your present ad
dress, whether you own or rent, and whether you are
insured.

Collateral

Is the creditor fully protected if you fail to repay?
Creditors want to know what you may have that

could be used to secure your loan, and what sources
you have for repaying debt other than income, such
as savings, investments, or property.

Creditors use different combinations of these facts in reaching their decisions.
Som e set unusually high standards and others simply do not make certain kinds of
loans. Creditors also use different kinds of rating systems. Some rely strictly on their
own instinct and experience. Others use a “ credit scoring” or statistical system to
predict whether you’re a good credit risk. They assign a certain number of points to
each of various characteristics that have proved to be reliable signs that a borrower
will repay. Then, they rate you on this scale.
And so, different creditors may reach different conclusions based on the same
set of facts. One may find you an acceptable risk, while another may deny you a
loan.
The Equal Credit Opportunity Act does not guarantee that you will get credit.
You must still pass the creditor’s tests of creditworthiness. But the creditor must
apply these tests fairly, impartially, and without discrimination against you on any of
the following grounds: age, sex, marital status, race, color, religion, national origin,
because you are on welfare or Social Security, or because you exercise your rights
under Federal credit laws. This means that a creditor may not use any of those
grounds as an excuse to:

Information the
Creditor Can’t Use

— discourage you from applying for a loan;
— refuse you a loan if you qualify;
— lend you money on terms different from those granted another person
with similar income, expenses, credit history, and collateral.

Special Rules

Age. Many older persons have complained about being denied credit just
because they were over a certain age. Or when they retired, they may have found
that their credit was suddenly cut off or reduced. So the law is very specific about
how a person s age may be used in credit decisions.
A creditor may ask your age, but if you’re old enough to sign a binding contract
(usually 18 or 21 years old depending on State law), a creditor may not:
— turn you down or decrease your credit just because of your age;
— ignore your retirement income in rating your application;
— close your credit account or require you to reapply for it just because
you reach a certain age or retire;
— deny you credit or close your account because credit life insurance or
other credit-related insurance is not available to persons your age.

Creditors may “score” your age in a credit-scoring system, but:

— if you are 62 or older you must be given at least as many points for age
as any person under 62.
Because age does have economic consequences, the law permits a creditor to
consider certain information related to age — such as how long until you retire or
how long your income will continue. An older applicant might not qualify for a large
loan with a 5 per cent down payment on a risky venture, but might qualify for a
smaller loan — with a bigger down payment — secured by good collateral. R e
member that while a declining income may be a handicap if you are older, you can
usually offer a solid credit history to your advantage. The creditor has to look at all
the facts and apply the usual standards of creditworthiness to your particular
situation.

Public Assistance. You may not be denied credit just because you receive
Social Security or public assistance (such as Aid to Families with Dependent
Children). But — as is the case with age — certain information related to this source
of income could have a clear bearing on creditworthiness. So, a creditor may con
sider such things as:
— how old your dependents are (because you may lose benefits when
they reach a certain age);
— whether you will continue to meet the residency requirements for re
ceiving benefits.

These factors help the creditor determine the likelihood that your public assistance
income will continue.

Housing Loans. The Equal Credit Opportunity Act covers your application
for a mortgage or home improvement loan. It bans discrimination because of such
characteristics as your race, color, sex, or because of the race or national origin of
the people in the neighborhood where you live or want to buy your home. Nor may
creditors use any appraisal of the value of your property that considers the race of
the people in your neighborhood.
Another Federal law, the Home M ortgage Disclosure Act, requires that
most lending institutions in metropolitan areas tell the public annually where they
have made their mortgage and home improvement loans. This information does
not tell you where loans were denied or why — it can’t be used to prove discrimi
nation — but it can help customers, community groups, and local officials working
with lenders to meet neighborhood needs for housing credit. You can ask to see the
information at any time at your bank, savings and loan, or credit union. Those in
terested in local cooperative efforts to increase mortgage lending and improve
housing in urban areas, may write to the Urban Reinvestment Task Force, 1120
19th Street, N.W., Washington, D.C. 20036.

Both men and women are protected from discrimination based on sex or
marital status. But many of the law’s provisions were designed to stop particular
abuses that generally made it difficult for women to get credit. For example, the
notion that single women ignore their debts when they marry, or that a wom an’s
income “ doesn’t count” because she’ll leave work to have children, now is unlawful
in credit transactions.

Discrimination
Against Women

The general rule is that you may not be denied credit just because
you are a woman, or just because you are married, single, widowed,
divorced, or separated. Here are some important protections:
Sex and
Generally, creditors may not ask your sex on an
Marital Status application form (one exception is on a loan to buy
or build a home).
You do not have to use Miss, Mrs., or Ms. with your
name on a credit application. But, in some cases, a
creditor may ask whether you are married, unmar
ried, or separated (unmarried includes single, di
vorced, and widowed).

Child-bearing Creditors may not ask about your birth control
practices or whether you plan to have children, and
Plans
they may not assume anything about those plans.
Income and
Alimony

The creditor must count all of your income, even
income from part-time employment.
Child support and alimony payments are a primary
source of income for many women. You don’t have
to disclose these kinds of income, but if you do
creditors must count them.

Telephones

Creditors may not consider whether you have a
telephone listing in your name because this would
discriminate against most married women. (You
may be asked if there’s a telephone in your home.)

A creditor may consider whether income is steady and reliable, so be pre
pared to show that you can count on uninterrupted alimony payments or part-time
wages. If you're pregnant when you apply for a loan, bring some proof that you’ll be
paid during maternity leave or that your job will be open for you when you return.
(Before you go to apply, ask the creditor what proof is acceptable.)

Your own accounts. Many married women used to be turned down when
they asked for credit in their own name. Or, a husband had to co-sign an account —
agree to pay if the wife didn’t — even when a woman’s own income could easily
repay the loan. Single women were refused loans because they were judged som e
how less “ reliable” than other applicants. You now have a right to your own credit,
based on your own credit records and earnings. Your own credit means a separate
account or loan in your own name — not a joint account with your husband or a
duplicate card on his account. Here are the rules:
— Creditors may not refuse to open an account just because of your sex
or marital status.
— You can choose to use your first name and maiden name (Mary
Smith); your first name and husband’s last name (Mary Jones); or a
combined last name (Mary Smith-Jones).
— If you’re creditworthy, a creditor may not require your husband to co
sign your account, with exceptions in “ community property States,”
where husbands and wives are equally responsible for each other’s
debts.
— Creditors may not ask for information about your husband or exhusband when you apply for your own credit based on your own
income — unless that income is alimony, child support, or separate
maintenance payments from your spouse.

This last rule, or course, does not apply if your husband is going to use your account
or is responsible for paying your debts, or you live in a community property State.
(Community property States are: Arizona, California, Idaho, Louisiana, Nevada,
N ew Mexico, Texas, and Washington.)

Change in Marital Status. Married women have sometimes faced severe
hardships when cut off from credit after their husbands died. Single women have
had accounts closed when they married, and married women have had accounts
closed after a divorce. The law says that creditors may not require you to reapply
for credit just because you marry or become widowed or divorced. Nor may they
close your account or change the terms of your account on these grounds. There
must be some sign that your creditworthiness has changed. For example, creditors
may ask you to reapply if you relied on your ex-husband’s income to get credit in
the first place.
Setting up your own account protects you by giving you your own history of
debt management to rely on if circumstances do change because of widowhood or
divorce. If you’re getting married and plan to take your husband’s surname, write to
your creditors and tell them if you want to keep a separate account.

Remember, your sex or race may not be used to discourage you from applying
for a loan. And creditors may not delay your application on those grounds. Under
the Equal Credit Opportunity Act, you must be notified within 30 days after your
application has been completed whether your loan has been approved or not. If
credit is denied, this notice must be in writing and it must explain the specific
reasons for denying credit or tell you of your right to request an explanation. You
have the same rights if an account you have had is closed.

If Y o u ’re Turned
Down

If you are denied credit, be sure to find out why. Remember, you may have to
ask the creditor for this explanation. It may be that the creditor thinks you have re
quested more money than you can repay on your income. It may be that you have
not been employed or lived in the community long enough. Y ou can discuss terms
with the creditor and ways to improve your creditworthiness. The next chapter ex
plains how to improve your ability to get credit.
If you think you have been discriminated against, cite the law to the lender. If
the lender still says no without a satisfactory explanation, you may contact a
Federal enforcement agency for assistance or bring legal action as described in the
last chapter of this handbook.

CREDIT
HISTORIES
A N D RECORDS

Building Up a
Good Record

On your first attempt to get credit, you may face a common frustration: som e
times it seems you have to have credit to get credit. Som e creditors will rely entirely
on your salary and job and the other financial information you supply on your ap
plication. But most also want to know about your experience in handling credit —
how reliably you’ve repaid past debts. They turn to the records kept by credit
bureaus or credit reporting agencies whose business is to collect and store informa
tion about borrowers that is routinely supplied by many lenders. These records in
clude the amount of credit you have received and how faithfully you’ve paid it
back.
Here are several ways you can begin to build up a good credit history:

— Open a checking account or a savings account, or both. These do not
begin your credit file, but may be checked as evidence that you have
money and know how to manage it. Cancelled checks can be used to
show you pay utilities or rent bills regularly, a sign of reliability.
— Apply for a department store credit card. Repaying credit card bills on
time is a plus in credit histories.

— If you’re new in town, write for a summary of any credit record kept by
a credit bureau in your former town. (Ask the bank or department
store in your old home town for the name of the agency it reports to.)
— Ask a friend or relative with a good credit standing to co-sign an appli
cation with you for your first account.
— If you’re turned down, find out why and try to clear up any misunder
standings.

The following laws can help you start your credit history and keep your record
accurate:

What Laws Apply?

- THE E Q U A L CREDIT O P P O R T U N IT Y A C T gives women a way to
establish their own credit history and identity.
— THE FAIR CREDIT R EPO R TING A C T sets up a procedure for cor
recting mistakes on your credit record.

Credit Histories
for Women

W om en who are divorced or widowed might not have separate credit histories
because all past credit accounts were listed in their husbands’ names. But they can
benefit from this record. Under the Equal Credit Opportunity Act, creditors must
consider the credit history of any account women have held jointly with their hus
bands. Creditors must also look at the record of any account held only in the
husband’s name if a woman can show it also reflects her own creditworthiness. If
the record is unfavorable — if an ex-husband was a bad credit risk — she can try to
show that the record does not reflect her own reputation.

H ere’s an example:
Mary Jones, when married to John Jones, always paid their credit-card
bills on time and from her own checking account. But the card was issued
in John’s name, and the credit bureau kept all records in John’s name.
N ow Mary is a widow and wants to take out a new card, but she’s told
she has no credit history. T o benefit from the good credit record already
on the books in John’s name, Mary should point out that she handled all
accounts properly when she was married and that bills were paid by
checks from her own account.

Married women probably w on’t have Mary’s problem in the future. Under the
Equal Credit Opportunity Act, reports to credit bureaus must now be made in the

names of both husband and wife if both use an account or are responsible for re
paying the debt. Remember that a wife may also open her own account to be sure
of starting her own credit history.

Mistakes on your credit record — sometimes mistaken identities — can cloud
your credit future. Your credit rating is important, so be sure credit bureau records
are complete and accurate.
The Fair Credit Reporting Act says that you may examine information in your
credit file and have any errors corrected.

Keeping Up
Credit Records

Negative Information. If a lender refuses you credit because of unfavor
able information in your credit report, ask for the name and address of the agency
that keeps your report. Then, you may either request information from the credit
bureau by mail or in person. You will not get an exact copy of the file, but you will at
least get a summary of it. The law also says that the credit bureau must help you
interpret the data — because it’s raw data that takes experience to analyze. If you’re
challenging a credit refusal made within the past 30 days, the bureau may not
charge a fee for giving you information.
Any error of importance that you find must be investigated by the credit
bureau with the creditor who supplied the data. The bureau will rem ove from your
credit file any errors the creditor admits are there. If you disagree with the findings,
you can file a short statement in your record giving your side of the story. Future re
ports to creditors must include this statement or a summary of it.

O ld Information. Sometimes credit information is too old to give a good
picture of your financial reputation. There is now a limit on how long certain kinds
of information may be kept in your file:
— Bankruptcies must usually be rem oved from your credit history after
14 years.
— Suits and judgments, tax liens, arrest records, and most other kinds of
unfavorable information must usually be rem oved after 7 years.
Another important provision of the law is that you may withhold your credit
record from anyone who does not have a legitimate business need for it. Stores to
which you are applying for credit or prospective employers may examine your
record; curious neighbors may not.

Billing Mistakes. In the next chapter, you will find the steps to take if there’s
an error on your bill. By following these steps, you can protect your credit rating.

CORRECTING
CREDIT
MISTAKES

The best way to keep up your credit standing is to repay all debts on time. But
there may be complications. To protect your credit — to save your time, your
money, and your future credit rating — you should learn how to correct the mis
takes and misunderstandings that can tangle up your credit accounts.
When there’s a snag, first try to deal directly with the creditor. The credit laws
can help you settle your complaints without a hassle.

— THE FAIR CREDIT BILLIN G A C T sets up a procedure for promptly
correcting billing mistakes; for refusing to make credit card payments
on defective goods; and for promptly crediting your payments.
— TR U TH IN LEND ING gives you 3 days to change your mind about a
second mortgage contract; it also limits your risk on lost or stolen credit
cards.

Month after month John Jones was billed for a lawn mower he never ordered
and never got. Finally, he tore up his bill and mailed back the pieces — just to try to
explain things to a person instead of a computer.
There’s a more effective, easier way to straighten out these errors. The Fair

What Laws Apply?

Billing Errors

Credit Billing Act requires creditors to correct errors promptly and without damage
to your credit rating.

A Case of Error? The law defines a billing error as any charge:
— for something you didn’t buy or for a purchase made by someone not
authorized to use your account;
— that is not properly identified on your bill or is for an amount different
from the actual purchase price or was entered on a date different from
the purchase date;
— for something that you did not accept on delivery or that was not de
livered according to agreement.
Billing errors also include:
— errors in arithmetic;
— failure to reflect a payment or other credit to your account;
— failure to mail the statement to your current address, provided you
notified the creditor of an address change at least 10 days before the
end of the billing period;
— a questionable item, or an item for which you need additional infor
mation.

In Case of Error. If you think your bill is wrong, or want more information
about it, follow these steps:
1. Notify the creditor in writing within 60 days after the bill was mailed. Be
sure to write to the address the creditor lists for billing inquiries and to tell the
creditor:
— your name and account number;
— that you believe the bill contains an error and why you believe it is
wrong;
— the suspected amount of the error or the item you want explained.
2. Pay all parts of the bill that are not in dispute. But, while waiting for an
answer, you do not have to pay the amount in question (the “ disputed amount” ) or
any minimum payments or finance charges that apply to it.
The creditor must acknowledge your letter within 30 days, unless your bill can
be corrected sooner. Within two billing periods — but in no case longer than 90
days — either your account must be corrected or you must be told why the creditor
believes the bill is correct.
If the creditor made a mistake, you do not pay any finance charges on the dis
puted amount. Your account must be corrected, and you must be sent an explana
tion of any amount you still owe. You then have the time usually given on your
type of account to pay any balance.

If no error is found, the creditor must promptly send you a statement of what
you owe, and may include any finance charges that have accumulated and any
minimum payments you missed while you were questioning the bill.
3.
If you still are not satisfied, you should notify the creditor within the tim
allowed to pay your bill.

Maintaining Your Credit Rating. A creditor may not threaten your credit
rating while you’re resolving a billing dispute.
Once you have written about a possible error, a creditor is prohibited from
giving out information to other creditors or credit bureaus that would damage your
credit reputation. And, until your complaint is answered, the creditor also may not
take any action to collect the disputed amount.
After the creditor has explained the bill, you may be reported as delinquent on
the amount in dispute, and the creditor may take action to collect if you do not pay
in the time allowed. Even so, you can still disagree in writing. Then the creditor must
report that you have challenged your bill and give you the name and address of
each person who has received information about your account. When the matter is
settled, the creditor must report the outcome to each person who has received in
formation. Remember that you may also place your own side of the story in your
credit record.

Your new sofa arrives with only three legs. You try to return it; no luck. You
ask the merchant to repair or replace it; still no luck. The Fair Credit Billing Act pro
vides that you may withhold payment on any damaged or shoddy goods or poor
quality services purchased with a credit card, as long as you have made a real at
tempt to solve the problem with the merchant.
This right is limited if the card was a bank or travel and entertainment card or
any card not issued by the store where you made your purchase. In such cases, the
sale:

Defective Goods
or Services

— must have been for more than $50; and
— must have taken place in your home State or within 100 miles of your
home address.

If you can avoid finance charges on your account by paying within a certain
amount of time, it is obviously important that you get your bills, and get credit for
paying them, promptly. Check your statements to make sure your creditor follows
these rules:

Prompt Billing. Look at the date on the postmark. If your account is
one on which no finance charge is added before a certain due date,

Prompt Credit for
Payments and
Refunds for
Overpayments

then creditors must mail their statements at least 14 days before pay
ment is due.
Prompt Crediting. Look at the payment date entered on the state
ment. Creditors must credit payments on the day they arrive.
Stores often give you a credit on your bill instead of cash when you return a
purchase. If this results in an overpayment on your account, a store must make a
refund in cash, at your request.

Cancelling a
Second Mortgage

Truth in Lending gives you a chance to change your mind on one important
kind of transaction — when you use your home as security for a credit transaction.
For example, when you are financing a major repair or remodeling, you have three
business days to think about the transaction and to cancel it if you wish. The
creditor must give you written notice of your right to cancel, and, if you decide to
cancel, you must notify the creditor in writing within the 30 day period. N o con
tractor may start work on your home, and no lender may pay you or the contractor
until the three days are up. If you want work started immediately for health or
safety reasons, you may give up your right to cancel by providing a written explana
tion of the circumstances.
This right to cancel (or right of “ rescission” ) was provided to protect you
against hasty decisions — or decisions made under pressure — that might endanger
your continued homeownership. The law does not apply to a first mortgage to

finance the purchase of your home; for that, you commit yourself as soon as you
sign the mortgage contract.

“ W ho steals my purse. .
just might be after the credit card in it. But, your
greatest cost may be inconvenience, because your liability on lost or stolen credit
cards is limited under Truth in Lending.
You do not have to pay for any unauthorized charges made after you notify
the card company of loss or theft of your card. So keep a list of your credit card
numbers and notify card issuers immediately if your card is lost of stolen. The most
you will have to pay for unauthorized charges is $50 on each card — even if som e
one runs up several hundred dollars worth of charges before you report a card
missing.
To protect you further, card companies may not collect from you for any loss
unless they can prove four things:
1. that they issued you the card at your request or that you used it at least
once before it was lost or stolen;
2. that they provided some means, such as a line for your signature or a
photo, for stores that accept the card to identify you as the person
authorized to use it;
3. that they notified you of your potential $50 liability;
4. that they provided you with a self-addressed stamped form to notify
them of loss or theft.

Lost or Stolen
Credit Cards

Unsolicited Cards

It is illegal for card issuers to send you a credit card unless you request it. H o w
ever, a card issuer may send you, without your request, a new card to replace an
expired one.

Discounts for Cash
Payments

It is illegal for credit-card companies to prohibit stores from offering discounts
to people who pay by cash or check. Stores that do offer cash discounts must make
this fact clear to all buyers. They may not add an extra charge (above the regular
price) for those customers choosing to use credit cards.
For example, suppose you want to buy an item regularly priced at $50. The
store offers a cash discount of 5 per cent. If you pay in cash, your price should be:
$50.00
- 2.50 (5% of $50)
$47.50

If you use a credit card, the price is $50.

C O M PLA IN IN G
A B O U T CREDIT

Always try to solve your problem directly with a creditor. Only then should you
bring more formal complaint procedures. H ere’s the way to file a complaint with the
Federal agencies responsible for administering consumer credit protection laws.

Complaints about Banks. If you have a complaint about a bank in con
nection with any of the Federal credit laws — or if you think any part of your busi
ness with a bank has been handled in an unfair or deceptive way — you may get
advice and help from the Federal Reserve.
You should submit your complaint — in writing whenever possible — to the
Director of the Division of Consumer Affairs, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551, or to the Reserve Bank for your district,
as listed on page 45 of this handbook. Be sure to describe the bank practice to
which you object and give the name and address of the bank involved.
The Federal Reserve will acknowledge your letter and try to respond in full
within 15 days. If that is not possible, our reply will set a reasonable date for furnish
ing you with complete information.
The Board has supervisory responsibility only for State-chartered banks that
are members of the Federal Reserve System. It will refer complaints about other

Complaining to
Federal Enforcement
Agencies

institutions to the appropriate Federal bank regulatory agency and let you know to
whom your complaint has been referred. Or you may use the listing on page 44 of
this booklet to write directly to the appropriate agency.
The practice you wish to complain about does not have to be subject to
Federal regulation. Furthermore, you don’t have to be a customer of the bank to file
a complaint.

Complaints about Other Businesses. On page 44 of this booklet, you
will also find the names of the regulatory agencies for businesses other than banks.
Many of these agencies do not handle individual complaints; however, they will use
information about your credit experiences to help enforce the credit laws.
Penalties Under
the Laws

You may also take legal action against a creditor. If you decide to bring a law
suit, here are the penalties a creditor must pay if you win.

Truth in Lending and Consumer Leasing Act. If any creditor fails to
disclose information required under Truth in Lending or Truth in Leasing, or gives
inaccurate information, or does not comply with the rules about credit cards or the
right to cancel, you as an individual may sue for actual damages — any money loss
you suffer. In addition, you can sue for twice the finance charge in the case of a
credit transaction, or, if a lease is concerned, 25 per cent of total monthly payments.
In either case, the least the court may award you is $100, and the most is $1,000. In
any successful lawsuit, you are entitled to court costs and attorney’s fees.
Class action suits are also permitted. A class action suit is one filed on behalf of
a group of people with similar claims.

Equal Credit Opportunity Act. If you think you can prove that a creditor
has discriminated against you for any reason prohibited by the Act, you as an in
dividual may sue for actual damages plus punitive damages — that is, damages for
the fact that the law has been violated — of up to $10,000 if the violation is proved
to have been intentional. In a successful lawsuit, the court will award you court costs
and a reasonable amount for attorney’s fees. Class action suits are also permitted.

Fair Credit Billing. A creditor who fails to comply with rules applying to
the correction of billing errors automatically forfeits the amount owed on the item in
question and any finance charges on it, up to a combined total of $50 — even if the
bill was correct. You as an individual may also sue for actual damages plus twice the
amount of any finance charges, but in any case not less than $100 nor more than
$1,000. You are also entitled to court costs and attorney’s fees in a successful law
suit. Class action suits are also permitted.

Fair Credit Reporting. You may sue any credit reporting agency or
creditor for violating the rules about who may have access to your credit records
and correcting errors in your file. Again, you are entitled to actual damages, plus
punitive damages as the court may allow if the violation is proved to have been in
tentional. In any successful lawsuit, you will also be awarded court costs and at
torney’s fees. An unauthorized person who secures a credit report — or any em
ployee of a credit reporting agency who supplies a credit report to unauthorized
persons — may be fined up to $5,000 or imprisoned for one year, or both.

GLOSSARY*

Annual Percentage Rate The cost of a loan over a full year expressed as a per
centage.
Appraisal Fee

The charge for estimating the value of property offered
as security.

Asset

Property that can be used to repay debt, such as stocks
and bonds or a car.

Balloon Payment

A large extra payment that may be charged at the end of
a loan or lease.

Billing Error

Any mistake in your monthly statement as defined by the
Fair Credit Billing Act.

Collateral

Property offered to support a loan and subject to seizure
if you default.

Co-signer

Another person who signs your loan and assumes equal
liability for it.

Credit

The promise to pay in the future in order to buy or bor
row in the present; a sum of money due a person or a
business.

Credit Bureau

An agency that keeps your credit record.

Credit Card

Any card, plate, or coupon book used from time to time
or over and over again up to a certain limit to borrow
money or buy services on credit.

Credit History

The record of how you’ve borrowed and repaid debts.

Creditor

A person or business from whom you borrow or to whom
you owe money.

Credit-related Insurance

Health, life, or accident insurance designed to pay the
outstanding balance of debt.

Credit Scoring System

A statistical system used to rate credit applicants ac
cording to various characteristics relevant to creditworthiness.

Creditworthiness

Past and future ability to repay debts.

Default

Failure to meet the terms of your credit agreement.

Disclosure

Information that must be given to consumers before they
sign a credit contract.

ilderly Applicant

As defined in the Equal Credit Opportunity Act, a person
62 or older.

nnance Charge

The total dollar amount paid to get a loan.

Joint Account

A credit account signed by two or more people so that all
can use the account and all assume liability to repay.

Judgmental System

A nonstatistical system for evaluating creditworthiness.

-ate Payment

A payment made later than agreed upon in a credit con
tract and on which additional interest may be charged.

-essee

A person who signs a lease to get temporary use of
property.

-essor

A company that provides temporary use of property
usually in return for periodic payment.

Liability on an Account

Legal responsibility to repay debt.

Open End Credit

A line of credit that may be used over and over again up
to a certain borrowing limit, also called a charge account
or revolving credit.

Open End Lease

A lease which may involve a balloon payment based on
the value of the property when it is returned.

Overdraft Checking
Account

A line of credit that allows you to write checks for more
than your actual balance, with an interest charge on the
overdraft.

Points

Some extra per cent of the amount borrowed, included
as part of your loan fee. Finance charges paid at the be
ginning of a first mortgage in addition to monthly interest;
each point equals one per cent of the amount financed.

Punitive Damages

Damages awarded by a court above actual damages as
punishment for a violation of law.

Rescission

The cancellation of a contract.

Security

Property pledged to the creditor in case of a default on a
loan; see collateral.

Security Interest

The creditor’s right to take property or a portion of prop
erty offered as security.

Service Charge

A component of some finance charges, such as the fee
for triggering an overdraft checking account into use.

*The regulations contain legal definitions of many of these terms.

Subject Index

Page

^ v e r tis in g ......................................
^ g e ...................................................
\ P R .................................................
Balloon Paym ent..............................
Billing Errors....................................
Cancellation (Rescission).................
Cash Discounts................................
Complaints......................................
Credit Applications.........................
Credit B u reau s................................
Credit C a rd s ....................................
Crediting of Paym ents.....................
Credit Laws
Consumer Leasing.......................
Equal Credit Opportunity.............
Fair Credit Billing.........................
Fair Credit R eporting...................
Home Mortgage Disclosure........
Real Estate Settlement Procedures
Truth in L e n d in g .........................
Credit Records
Confidentiality..............................

. .

. . 16
. . 11

..
..
..
..
..

33
34
36
37
13
24,27
. . 35
. . 33

.. 5
. . 13
. . 29
. . 25
.. i s
. .

12
5
28

Correcting Errors.......................................... 27
Time Limits on Inform ation......................... 28
W o m e n ......................................................... 26
Credit S coring....................................................15
Creditworthiness............................................... 14
Defective Merchandise...................................... 33
Denials of C re d it............................................... 23
Discrimination...........................................13, 19
Division of Consumer Affairs............................ 37
Enforcement Agencies.......................................44
Finance C harge...............................................
6
Housing L o a n s ..................................................18
Leasing................... , ......................................10
Open End C redit............................................. 8
Penalties............................................................ 38
Public Assistance............................................... 17
Reserve Banks...................................................45
Settlement C osts.............................................. 12
Women
Alimony and Support Payments................. 20
Change in Marital S ta tu s........................... 22
Co-signers................................................... 21
Credit Histories fo r ....................................... 26
Information About Spouse........................... 21
Separate Accounts........................................ 21

Federal Enforcement Agencies
National Banks
Comptroller of the Currency
Consumer Affairs Division
Washington, D C. 20219

State Member Banks
Federal Reserve Bank serving the district in
which the State member bank is located.

Nonmember Insured Banks
Federal Deposit Insurance Corporation R e
gional Director for the region in which the
nonmember insured bank is located.

Savings Institutions Insured by theFSLIC
and Members of the FHLB System (ex
cept for Savings Banks insured by
FDIC)
The Federal Home Loan Bank Board Super
visory Agent in the district in which the insti
tution is located.

Federal Credit Unions
Regional Office of the National Credit Union
Administration serving the area in which the
Federal Credit Union is located.

Creditors Subject to Civil Aeronautics
Board

Director, Bureau of Enforcement
Civil Aeronautics Board
1825 Connecticut Avenue, N.W.
Washington, D.C. 20428

Creditors Subject to Interstate Com
merce Commission
Office of Proceedings
Interstate Commerce Commission
Washington, D C. 20523

Creditors Subject to Packers and Stock
yards Act
Nearest Packers and Stockyards Administra
tion area supervisor.

Small Business Investment Companies
U.S. Small Business Administration
1441 L Street, N.W.
Washington, D.C. 20416

Brokers and Dealers
Securities and Exchange Commission
Washington, D.C. 20549

Federal Land Banks, Federal Land Ban!
Associations, Federal Intermediat<
Credit Banks and Production Credi
Association
Farm Credit Administration
490 L ’Enfant Plaza, S.W.
Washington, D.C. 20578

Mortgage Bankers, Consumer Financ<
Companies, and All Other Creditors
FTC Regional Office for region in which th<
creditor operates or
Federal Trade Commission
Equal Credit Opportunity
Washington, D.C. 20580
Any complaints may be referred to the Civ
Rights Division of the Department of Justice
Washington, D.C. 20530.

Federal Reserve Banks

BOARD OF G OVERNORS OF THE
FEDERAL RESERVE SYSTEM
20th and Constitution Avenue, N.W.
Washington, D.C. 20551
(202) 452-3000

D ALLAS, Texas
400 South Akard Street
Station K
ZIP 75222
(214) 651-6111

RICHMOND, Virginia
701 East Byrd Street
P.O. Box 27622
ZIP 23261
(804) 643-1250

A T L A N T A , Georgia
104 Marietta Street, N.W.
ZIP 30303
(404) 586-8500

K A N S A S CITY, Missouri
925 Grand Avenue
Federal Reserve Station
ZIP 64198
(816) 881-2000

SAN FRANCISCO, California
400 Sansome Street
P.O. Box 7702
ZIP 94120
(415) 544-2000

M INNEAPOLIS, Minnesota
250 Marquette Avenue
ZIP 55480
(612) 340-2345

ST. LOUIS, Missouri
411 Locust Street
P.O. Box 442
ZIP 63166
(314) 444-8444

BOSTON, Massachusetts
500 Atlantic Avenue
ZIP 02106
(617) 973-3000
CHICAGO, Illinois
230 South LaSalle Street
P.O. Box 834
ZIP 60690
(312) 322-5322

NEW YORK, New York
33 Liberty Street
Federal Reserve P.O. Station
ZIP 10045
(212) 791-5000

CLEVELAND, Ohio
1455 East Sixth Street
P.O. Box 6387
ZIP 44101
(216) 241-2800

PH ILAD ELPH IA, Pennsylvania
100 North Sixth Street
P.O. Box 66
ZIP 19105
(215) 574-6000

Other Consumer Pamphlets Available

What Truth In Lending Means to You
If You Borrow To Buy Stock
H ow To File a Consumer Credit Complaint
The Equal Credit Opportunity Act and ... A ge
The Equal Credit Opportunity Act and ... W om en
The Equal Credit Opportunity Act and ... Doctors, Lawyers, Small Retailers
The Equal Credit Opportunity Act and ... Credit Rights in Housing
Fair Credit Billing
Truth in Leasing
A Guide to Federal Reserve Regulations
Annual Percentage Rate Tables
Government in the Sunshine/A Guide to Meetings of the Board of Governors o
the Federal Reserve System
If You Use a Credit Card

Copies of this handbook and other consumer pamphlets are available upon reques
from Publications Services, Division of Administrative Services, Board of Gover
nors of the Federal Reserve System, Washington, D.C. 20551.

Full text of Federal Reserve Bank of New York Circulars : New Consumer Pamphlet and Handbook

FRASER