Question

Which regulations do credit card companies have to follow? Check all that apply.

They have to make all credit terms clear to the borrower.
They have to accept any borrower who applies for a credit card.
They are not allowed to change annual fees or interest rates.
They have to obtain a borrower’s information in a responsible way.
They cannot discriminate based on race, gender, or national origin.
They have to avoid abusive marketing practices and protect privacy.

Answer 1

Assuming U.S. rules, the correct ones to check are: 1, 4, 5, and 6.

- They have to make all credit terms clear to the borrower. — Yes. Truth in Lending Act (TILA) and related rules require clear disclosures (APR, fees, finance charges, minimum payments, etc.).
- They have to accept any borrower who applies for a credit card. — No. Creditors may deny applications based on creditworthiness, income, etc., but must follow anti‑discrimination law and give adverse‑action notices (ECOA, FCRA).
- They are not allowed to change annual fees or interest rates. — No. Issuers can change fees/rates subject to the card agreement and statutory limits (e.g., CARD Act protections on some retroactive APR increases, notice requirements).
- They have to obtain a borrower’s information in a responsible way. — Yes. Fair Credit Reporting Act (FCRA), Gramm‑Leach‑Bliley Act (GLBA) and related rules govern permissible uses of credit reports and require safeguards.
- They cannot discriminate based on race, gender, or national origin. — Yes. Equal Credit Opportunity Act (ECOA) and other laws prohibit discrimination on those bases (and others).
- They have to avoid abusive marketing practices and protect privacy. — Yes. Dodd‑Frank/CFPB prohibitions on unfair, deceptive, or abusive acts or practices (UDAAP), FTC rules, and GLBA privacy requirements apply.

If you want specifics for a particular country or examples of what lenders must disclose or when rates can be changed, tell me which country or which rule you want more detail on.