Fair Credit Reporting Act (FCRA)

The FCRA's main function as a law is to help ensure the accuracy of information in your credit file. Your credit report is probably the single most important document in your financial life. It provides the basis for your credit score, and it offers a look into your habits and history with money. More and more people are turning to your credit report in order to gauge what kind of borrower, tenant, employee or customer you would be.

The Fair Credit Reporting Act sets forth the rules for investigating disputed information, and correcting mistakes on your credit report. It also points out that there are time limits on how long information can appear in your report and offers rules for privacy.

Equal Credit Opportunity Act (ECOA)

It may seem strange that this has to be addressed in these days, but some would still restrict access to credit for superficial reasons. ECOA insists that credit cannot be denied to someone based upon the following characteristics:

• Gender
• Religion
• Sexual orientation
• Age
• National origin
• Ethnicity
• Marital status

While the above information can be collected for demographic purposes, it is not to be used as a basis for approving or denying credit. Additionally, the Equal Credit Opportunity Act states that reliable public assistance must be counted as income.

Fair Credit Billing Act (FCBA) and Electronic Fun Transfer Act (EFTA)

Both of these consumer protection laws focus on practices that refer to resolving inaccuracies and protecting you from liability due to mistakes. As technology advances, it is necessary to protect electronic transactions. FCBA and EFTA cover electronic transactions, as well as point of sale transactions with a physical card, that include credit, money transfer and other situations. The idea is to protect consumers from liability due to identity theft, fraud and mistakes in computation or reporting.

Fair Debt Collection Practices Act (FDCPA)

This is very important among consumer protection laws, due in large part to the way it protects those who are in debt. While the FDCPA acknowledges that someone with an obligation should do his or her best to repay it, the law also points out that there are some practices that debt collectors should not use when seeking payment.

In the past (and even now that it is against the law), debt collectors have used abuse, deception, harassment and other unfair means to try and scare someone with debt into making payments. These types of practices are not only unethical, but they are also illegal. Here are some of the restrictions that the Fair Debt Collection Practices Act imposes upon debt collectors:

• Must clearly identify self and state purpose of call.
• Cannot call at work if you have made it clear your employer does not want these calls.
• Can only call between 8 a.m. and 9 p.m. your local time.
• Cannot lie in order to force payment (i.e. indicating that you have committed a crime and that a warrant will be issued for your arrest)
• Must stop contacting you regarding the collection of the debt if you request it in writing (although the debt collector can contact you about legal proceedings).

The FDCPA covers every type of debt that you have, from personal loans to credit cards to payday loans to medical bills to auto loans. Additionally, the FDCPA covers all personal and household debts.

What to do if consumer protection laws are broken

Knowing the consumer protection laws can provide you with valuable insight into how things should be done. They are designed to help you, and you should take the time to carefully read them and see what sorts of rights you have.

If you feel that a law has been violated, document it, recording the date and time of the incident and who was involved. You can also include any documentation that you have. Write down a description of the incident. This is especially important if a debt collector is violating the Fair Debt Collection Practices Act. Report infractions to the authorities as soon as possible.

You can learn more about consumer protection laws by visiting the Federal Trade Commission Web site at www.ftc.gov.