Sepember 17 is a big day for all of us! That day is Constitution Day.
Across the United States, schools, federal agencies and even financial institutions will be celebrating the signing of our nation's Constitution in 1787 — that's 239 years ago!
That day is also Citizenship Day, which recognizes all people who have become U.S. citizens and encourages all Americans to reflect on the responsibility that comes with being a citizen.
The Constitution does not directly have laws that protect you as a consumer, like laws against fraud, unfair lending and credit laws. Most of the laws around those issues were created through the normal legislative process in the Federal government and state governments.
But, the Constitution does let the government regulate commerce and protect you financially. For example, there's a Commerce Clause that gives the U.S. Congress authority to regulate interstate commerce, which has led to lots of the federal consumer protection laws that you know today. Those laws include those that cover credit reporting, debt collection, lending, product safety, identity theft and more.
Here are three Federal acts that make a big difference in your day-to-day life:
Truth in Lending - The Truth in Lending Act was passed back in 1968 and is designed to ensure you (as a consumer) understand how much it will cost to borrow money and the terms of any loan you are considering. The law also protects you against unfair credit terms and ensures you have all the information you need to compare loan offers.
Fair Credit Reporting - The Fair Credit Reporting Act was passed in 1970. The FCRA helps ensure that the information provided to you by the credit reporting agencies (such as Equifax and TransUnion) is accurate. You are given the right to access your information, dispute errors and have a say in who can see your credit score.
Equal Credit Opportunity - This act makes sure banks cannot discriminate against an applicant for any prohibited reason, such as race, religion, gender and more. Banks can only evaluate your application on factors like creditworthiness, and if you are rejected for a loan, they have to explain why. This became law in 1974.
If you love history, there are a lot of great books out there about the history of banking, money and how it's influenced our world. Head over to Goodreads, Whichbook or another book recommendation engine to find something that interests you! We look forward to hearing your book recommendations.
Happy Constitution Day (and Citizenship Day) from all of us at CommonWealth One!