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Truth in Lending Act

The Consumer Financial Protection Bureau (CFPB) is issuing this advisory opinion to rescind an advisory opinion it issued in November 2020 that described how one particular type of ‘‘earned wage’’ product does not involve the offering or extension of ‘‘credit’’ as that term is defined in the Truth in Lending Act and Regulation Z.

The LIBOR is a benchmark index, also known as a reference rate, that is commonly used in millions of adjustable rate mortgages, home equity lines of credit (HELOCs), and student loans. Although it is still widely used, the index will no longer be available in its current form after June 30, 2023 and will cease to exist entirely on September 30, 2024. That means creditors and servicers will need to find and implement a replacement index for every contract still using the LIBOR at that time. This change should not require consumers to take any action.

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This is a Money Advisory 2012 magazine article discussing some retailers’ attempts to limit consumer rights under the Fair Credit Billing Act when consumers dispute with their credit card issuer charges assessed by the retailer.  For example, retailers may require the consumer to dispute the charge initially or even only with the retailer, and not seek a chargeback from the card issuer.

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