How does the Truth in Lending Act protect credit card consumers?

The Truth in Lending Act protects credit card consumers in New Mexico by providing them with information so that they can make informed decisions when entering into credit card contracts. The Act requires creditors to provide a written disclosure of the key terms of the credit card agreement, such as interest rate, finance charges, fees, and the grace period. This helps consumers to compare various offers and choose the one that is best for them. The Act also prohibits deceptive practices and imposes requirements on creditors to ensure that consumers receive accurate information. Creditors must provide a written notice before a change in the terms of the agreement or before raising the interest rate. They are also prevented from applying payments to the portion of debt that carries the lowest interest rate. Finally, the Act gives consumers the right to dispute inaccurate or incomplete credit card billing statements. Consumers are entitled to an investigation of their dispute within a reasonable time frame, and creditors must correct inaccurate or unfair statements within 90 days. In cases where the consumer prevails, creditors are required to reverse the charges, credit the account, and refund late fees.

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How does the Truth in Lending Act protect credit card consumers?

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