When we talk about consumer credit, we are talking about the use of credit to finance transactions without having to pay the full amount of the merchandise at the time of payment. The most common form of consumer credit is a credit card issued by a financial institution. Merchants can also finance the products they sell. Banks can finance purchases directly through loans and mortgages. This type of consumer credit is most often used for cars, homes, and other large purchases. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Consumer credit law is primarily enshrined in federal and state statutory laws. These laws protect consumers and provide guidelines to the lending industry. There are many different laws that protect both the lender and the borrower when it comes to obtaining credit for consumers. States have adopted 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, to ensure that adequate credit is provided, and to govern the credit industry generally. Congress passed the Consumer Credit Protection Act, in part to regulate the consumer credit industry. It requires creditors to disclose credit terms to consumers. The Consumer Credit Protection Act also protects consumers from loan sharks, restricts wage garnishment, and created the National Consumer Finance Commission 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 when granting credit. The law also regulates certain debt collectors and provides rules about what they can and cannot do when trying to collect a debt. Let's be realistic, we need credit. We may not need it for everyday things like groceries and toiletries, but if we want to own a car or a house, it is necessary because not all consumers can pay cash for such expensive items, making obtaining credit essential. Credit card companies and credit lenders, consumer credit is a multi-billion dollar industry. Since we need lines of credit to obtain certain important things in our lives, it is good that legislators realize that it is necessary to have consumer credit laws in order to avoid abuse of the system . Keep in mind: this is just an example. .Get a custom paper from our expert writers now.Get a Custom EssayThe everyday consumer has at least one open line of credit, but the average in the United States shows that we have at least four to five lines of credit from one one way or another, in one form or another. or form. As a consumer, you must use your lines of credit wisely and pay your monthly payments on time. If you don't do this, you will end up with a bad credit score and poor credit report. Consumer credit can work for you or against you – it all depends on YOU!