Are There Additional Laws Protecting My Rights as a Consumer?
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General Answers: Yes, several laws provide protection to consumers in addition to the FDCPA.
As a consumer, you have protection under several different federal laws. For those dealing with a debt collector, most rely on the Fair Debt Collection Practices Act (FDCPA). This federal law prohibits collection agencies from harassing and deceptive debt collection practices.
However, the FDCPA is not the only law that protects you from unfair and unethical practices by debt collectors. There are other laws that protect you in different ways. This includes credit reporting requirements, robocalls and protections from discrimination.
In this article, you will learn about the additional laws that protect your rights as a consumer. Use this article as a guide to understand how these various laws can protect you during the debt collection process and beyond.
Telephone Consumer Protection Act
The Telephone Consumer Protection Act (TCPA) provides additional protections for how a collection agency may contact you. Some of these protections include the following:
- A collection agency cannot use an automated dialing system to make robocalls about your debt.
- Without your consent, a debt collector cannot leave pre-recorded messages on your phone.
- If you opt out, a collection agency cannot send you messages or call you.
Consumer Credit Protection Act
The Consumer Credit Protection Act (CCPA) is a broad law designed to ensure fair and honest business practices in the area of lending money. This includes credit card companies, banks and other types of creditors.
The CCPA provides various requirements to further its goal of fair lending practices. Some of those requirements include:
- Advertisement Regulations
- Necessary Disclosures
- Opt-out rights
The CCPA consists of several different laws that serve to meet this goal. Some of those acts are described in greater detail below.
The Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) ensures that consumer reporting agencies provide accurate and fair credit information. In addition, consumer reporting agencies and those that use these reports must keep your credit records private.
Under the FCRA, some of the rights you have include the following:
- To know what is in your file with any credit bureaus. You can request one free report each year. You also have a right to know your credit score.
- You must receive notification for any adverse action taken against you because of your credit report.
- You have the right to dispute inaccurate or incomplete information.
- A consumer reporting agency must remove negative credit information after 7 years (10 years for bankruptcies).
- A request for your credit information must be for a valid need.
Electronic Fund Transfer Act
The Electronic Fund Transfer Act (EFTA) protects consumers engaging in any type of electronic fund transfer (EFT). EFTs include the following:
- Point-of-sale terminals
- Remote banking
- Automated Teller Machines (ATMs)
- Automated Clearinghouse (ACH) payments
This law protects consumer transactions that result in an immediate withdrawal of your funds. Some protections it provides include the following:
- Limited liability on a lost card
- Protections for international transfers
- Caps on fees
- Fraud protection
Equal Credit Opportunity Act
The Equal Credit Opportunity Act (ECOA) prevents discrimination in the lending business. A creditor cannot refuse to give a loan to a person because of their
- Race
- Religion
- Color
- Age
- National Origin
- Sex
- Marital Status
Truth in Lending Act
The Truth in Lending Act (TILA) is part of the CCPA. The TILA regulates creditor advertising. One requirement is that creditors must provide mandatory disclosures in any of their advertisements.
In addition, the TILA regulates the billing practices of creditors. Specifically, the TILA requires creditors to provide information to consumers on credit transactions. For example, a creditor must provide certain disclosures regarding finance charges.
When selling a loan, a creditor must disclose the entire cost without any hidden fees. Fortunately, after you sign a loan agreement you have 3 days to back out of it for any reason.
The Federal Wage Garnishment Law
Another important section of the CCPA is the Federal Wage Garnishment Law. This law provides two major protections. First, it limits how much a collection agency can garnish per paycheck. The limit is no more than 25 percent of a person’s disposable earnings.
In addition, it protects you from losing your job due to having a garnishment for a single debt.
What Can I Do if There is a Violation of Any of These Laws?
If a debt collector or other party violates any of these laws, you can file a lawsuit. Depending on the law, a court may award you statutory damages, real damages and court costs. They can also put a stop to the illegal behavior.
There are also federal agencies that oversee these laws. You can submit a complaint to them about the violation. For example, you can submit a violation of the TCPA to the Federal Communication Commission (FCC).
Conclusion
As a consumer, you have several different protections under federal law. It is important to understand how each of these laws may protect you when dealing with a collection agency or other rogue company.
However, these laws contain a lot of information. As a result, it is not always easy to recognize a violation. If you think a collection agency or creditor violated your rights, discuss the matter with a consumer rights attorney. They can determine if the debt collector violated any laws and identify the actions you can take.
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