I. Credit and credit cards
>Massachusetts laws
MGL c.93, §§ 50-70 Credit reporting
MGL c.93, § 105 Credit cards; checks; personal identification information
>Federal laws
15 USC §§ 1601 et seq. Consumer credit cost disclosure (Truth in Lending Act)
15 USC § 1681 et seq. Fair Credit Reporting Act
>Selected cases
Lance v. PNC Bank, NA, US District Court, Mass. (2015)
In "an action arising out of allegedly improper reporting of the status of a residential mortgage loan to a credit reporting company," claims under MGL c.93, s.54A and c.93A are preempted by the federal Fair Credit Reporting Act (FCRA).
Marquette National Bank v. First of Omaha Service Corp., 439 US 299 (1978)
Decision allowed a national bank to charge interest on credit cards at the rate allowed by the state where it was located, regardless of legal limits in the customers' home states.
Tyler v. Michaels Stores, 464 Mass. 492 (2013)
Construing G. L. c. 93, § 105 (a), the court held: "a zip code constitutes 'personal identification information' ...; that the term 'credit card transaction form' refers equally to electronic and paper transaction forms; and that a plaintiff may bring an action for violation of G. L. c. 93, § 105 (a), without alleging a claim of identity fraud."
>Web sources
Credit cards
The Mass. Attorney General’s Office provides a number of resource guides for the consumer in regard to credit and credit cards.
- Boost your credit I.Q.: Limitations on interest rates and late charges (for credit cards), Mass. Attorney General.
"Massachusetts law generally limits credit card annual interest rates to 18% and late charge penalties to $10 per payment. However, Massachusetts credit card customers of national banks located in South Dakota, Delaware, or other states may pay considerably higher interest rates and late penalties, because those states allow the higher rates and penalties. Therefore, make sure you are aware of which state the lender is located in and that you understand the credit terms before you take on a new credit card."
- Does a credit card make sense for me?, Mass. Attorney General’s Office.
There are benefits and risks to making purchases with credit. These tips can help you protect yourself when using a credit card. - Guide to consumer credit, Mass. Attorney General, February 2018.
Covers Truth in Lending, billing rights, costs of credit, Fair Credit Reporting, Fair Debt Collection, and more. - Understanding debt and credit, Mass. Attorney General.
Learn more about managing your credit and your rights and responsibilities with credit and debt. Having an issue with a debt collector, a credit card company, or a credit reporting agency? File a consumer complaint with the Attorney General's Office.
Credit card rules and the CARD Act, Findlaw.
A variety of protections for credit card holders and applicants.
Credit card secrets, Division of Banks.
"There are many aspects of credit cards you may not even realize. The Division of Banks offers the top 12 issues and remedies to help fix these problems."
Credit cards, National Consumer Law Center.
Policy analysis, current litigation, and additional resources.
Credit cards, U.S. Consumer Financial Protection Bureau.
"Whether you’re shopping for a new card or getting a handle on an existing one, here are the resources you need to manage your credit cards."
Credit discrimination, U.S. Consumer Financial Protection Bureau.
Includes links to file a complaint and ask questions.
Credit, loans, and debt, Federal Trade Commission.
Includes information on credit scores, debit and credit cards, and loans.
Know the new credit card rules (and the loopholes), Mass. Secretary of the Commonwealth, 2010.
A brochure explaining rules for finance charges, interest rates, payment processing, and fees.
What is buy now, pay later?, NerdWallet, 2023.
Covers the pros and cons of the new debt option. Warnings that it can be easy to overspend and may eventually impact your credit.
Credit reporting
AnnualCreditReport.com
This resource is mandated by the federal government and run by Equifax, Experian and TransUnion. It is the official website for free credit reports.
Credit reports and scores, U.S. Consumer Financial Protection Bureau.
Your credit reports and scores have an impact on your finances. Our resources can help you better understand them, learn how to correct errors, and improve your credit record over time.
Fair credit reporting, Mass. Attorney General.
Advisory on obtaining a free copy of your credit report.
Monitoring your credit report, Mass. Attorney General.
Advisory on how to handle discrepancies with your credit report.
Rates
How do lenders set interest rates, Federal Reserve Bank of Minneapolis.
A discussion of the concepts lenders use to determine interest rates.
Interests rates, Credit.org.
What are Interest Rates & How Does Interest Work?
>Print sources
Consumer credit: law, transactions and forms, Matthew Bender, loose-leaf.
Consumer credit regulation, NCLC, 2020.
Consumer law, 4th edition (Mass. practice v.35A), West Group, 2021.
Chapter 15 Consumer credit loans
Credit repair by Amy Loftsgordon, Nolo, 2022. (eBook available here with library card).
Truth in lending, NCLC, 2019.
II. Banking and the banking industry
>Massachusetts laws
MGL c.140, § 96 Small loan business
MGL c.167 Supervision of banks
MGL c.167A Bank holding companies
MGL c.167B Electronic branches and electronic fund transfers
MGL c.167C Bank locations
MGL c.167D Deposits and accounts
MGL c.167E Mortgages and loans
MGL c.167F Investments and other powers
MGL c.167G Trust department
MGL c.167H Mutual holding companies
MGL c.167I Corporate bank transactions: mergers, consolidations, purchase of assets and conversions
MGL c.167J Corporate governance provisions and requirements
MGL c.168 Savings banks
MGL c.169 Receipts of deposits for transmittal to foreign countries
MGL c.169A Licensing of check cashers
MGL c.170 Co-operative banks
MGL c.171 Credit unions
MGL c.184, § 17B 1/2 Variable or adjustable subprime loans for first-time home loan borrowers
MGL c.271, § 49 Criminal usury
>Massachusetts regulations
201 CMR 16 Placing, lifting and removal of security freezes (Office of Consumer Affairs and Business Regulation)
209 CMR Division of Banks regulations
>Federal oversight & laws
- The Federal Deposit Insurance Corporation (FDIC), created in 1933, is the primary regulator of state banks and has collateral authority over national banks, and insures depositors against bank losses.
- The Federal Reserve Board has general regulatory authority over the operations and disclosure obligations of all banks, both nationally- and state-chartered.
- The Office of the Comptroller of the Currency (OCC) charters all national banks and is responsible for supervision and examination of those banks.
FDIC: Law, regulations, related acts
This page compiles links to banking-related statutes, regulations, and similar material relevant to the work of the FDIC.
Laws & regulations, OCC.
"The OCC is the primary regulator of banks chartered under the National Bank Act (12 USC 1 et seq.) and federal savings associations chartered under the Home Owners' Loan Act of 1933 (12 USC 1461 et seq.). The OCC's regulations, derived from these acts, are in title 12 of the Code of Federal Regulations, 'Banks and Banking' (12 CFR 1–199)."
>Federal regulations
12 CFR 226 Regulation Z Truth in lending
12 CFR 7.4001 Charging interest by national banks at rates permitted competing institutions; charging interest to corporate borrowers
Comprehensive list of banking regulations from the Federal Reserve Board.
>Web sources
Bank accounts and services, U.S. Consumer Financial Protection Bureau.
When choosing and using your bank or credit union account, it’s important to know your options.
Compliance with Regulation CC: a guide for financial institutions, Federal Reserve Board.
Explains when your money will be available to you after you deposit it in a bank.
Financial industry resources, Division of Banks.
Resources on this page include "opinions, decisions, industry letters, Regulatory Bulletins, activity reports, industry guidances, forms, applications, and more."
Financial resources for consumers, Office of Consumer Affairs and Business Regulation.
Provides links to Mass. information on banking, loans, credit reporting, debt collection, filing a complaint and more.
Pace Law Library research guide
This research guide will introduce users to major primary and secondary resources in U.S. federal banking law. (Note: the state resources are not applicable to Mass.)
>Print sources
Banking 101, MCLE New England, 2013.
Computation of service or interest charge on bank credit cards as usurious under National Bank Act (12 U.S.C.A. § 85), 38 A.L.R. Fed. 805.
Truth in lending, NCLC, 2019.
Contact for Massachusetts law about credit, banking, and interest rates
Online
| Last updated: | August 8, 2023 |
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