Now's a good time for a bird's eye view of the Consumer Credit Protection Act, enacted in 1968, which contains a "package" of federal Acts that operate to protect consumers in the credit markets.
The Acts are summarized below:
Fair Credit Reporting Act (FCRA):
- Regulates users of credit reports;
- Regulates creditors and debt collectors that "furnish" information to the credit reporting agencies (Equifax, Experian, and Transunion);
- Regulates activities of consumer reporting agencies; and
- Provides remedies to consumers harmed by violations.
Fair Debt Collection Practices Act (FDCPA)
- Regulates activities of debt collectors (includes debt buyers and collection lawyers);
- Prohibits false, misleading, deceptive, and unfair practices; and
- Provides remedies to consumers harmed by violations.
Truth in Lending Act (TILA)
- Requires informed use of consumer credit by requiring disclosures about terms and costs;
- Provides right to cancel some credit transactions involving a lien on consumer's principal dwelling;
- Provides system to resolve credit-billing disputes;
- Contains rules for open-ended credit, closed-ended credit, and private-education loans; and
- Provides remedies to consumers harmed by violations.
Equal Credit Opportunity Act (ECOA)
- Prohibits discrimination against credit applicants based on race, color, religion, national origin, sex, marital status, age, use of public assistance, or from retaliation against exercising federally protected rights; and
- Provides remedies to consumers harmed by violations.
Wage Garnishment Protections
- Exempts portions of worker's earnings;
- Prohibits employers from firing employees for single indebtedness; and
- No separate remedy but FDCPA may apply to violations.
Electronic Fund Transfer Act (EFTA)
- Enforces consumer protection by establishing the rights, liabilities, and responsibilities of participants in electronic fund and remittance transfer systems;
- Prohibits lenders and creditors from requiring payment by electronic means; and
- Protects consumers from full liability for charges after card is lost or stolen.
If you feel victimized by a potential violation of any of the above Acts, contact us right away.