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Saturday, May 30, 2009

15 U.S.C. 1681a - Part 9

I continue my explanation of 15 U.S.C. 1681a with subsection (r).

"(r) Credit and Debit Related Terms

(1) The term 'credit issuer' means - -

(A) a credit card issuer, in the case of a credit card; and"

[i.e. Bank of America, Chase, etc.]

"(B) a debit card issuer, in the case of a debit card."

[i.e. your bank or whoever issues your bank card]

"(2) The term 'credit card' has the same meaning as in section 103 of the Truth in Lending Act."

[I think everyone in the nation knows what a credit card is, unfortunately.]

"(3) The term 'debit card' means any card issued by a financial institution to a consumer for use in initiating an electronic fund transfer from the account of the consumer at such financial institution, for the purpose of transferring money between accounts or obtaining money, property, labor, or services."

[You probably know what a debit card is too. Its your ATM card that also allows you to make purchases just like a credit card, except that the money comes directly out of your bank account to pay the seller. Think of it this way, a debit card is like gambling in Vegas with your money. You can get into trouble but you can't lose more than you have. A credit card is like gambling in Vegas on a line of credit from the casino, which means you can lose more than you have and get in big trouble. With a credit card, you can spend more than you have. With a debit card, you can't.]

"(4) The terms 'account' and 'electronic fund transfer' have the same meanings as in section 903 of the Electronic Funds Transfer Act."

[The Electronic Funds Transfer Act (i.e. EFTA) defines "account" as "a demand deposit, savings deposit, or other asset account". So its a bank or other financial instution account that holds your money, but does not include a credit card or other credit type account (i.e. line of credit). An "electronic fund transfer" according to the EFTA is a debit or credit to an account that is initiated electronically.]

"(5) The terms 'credit' and 'creditor' have the same meaings as in section 702 of the Equal Credit Opportunity Act."

[The Equal Credit Opportunity Act defines "credit" as " the right granted by a creditor to a debtor to defer payment of debt or to incur debts and defer its payment or to purchase property or services and defer payment therefor". In other words, the right to charge it but not have to pay for it until later.

The term "creditor" according to the ECOA means "any person who regularly extends, renews, or continues credit; any person who regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who participates in the decision to extend, renew, or continue credit." In other words, any lender such as a credit card company, a bank, a mortgage company, etc.]

"(s) The term 'Federal banking agency' has the same meaning as in section 3 of the Federal Depost Insurance Act."

[The Federal Insurance Act defines "Federal banking agency" as "the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation."]

"(t) The term 'financial institution' means a State or National bank, a State or Federal savings and loan association, a mutual savings bank, a State or Federal credit union, or any other person that, directly or indirectly, holds a transaction account (as defined in section 19(b) of the Federal Reserve Act) belonging to a consumer."

["Financial institution" pretty much means any bank, credit union, savings and loan (do those still exist?), or anyone that holds a transaction account of a consumer.]

Ok, that's it for part 9. Part 10 of the explanation of 15 U.S.C. 1681a will start with subsection (u)'s definition of "reseller".

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