Consumer Issues PDF

Consumer Issues Primary Consumer Credit Protection Laws genera The J Truth-in-Lending Act Federal Trade Commission Consumer Lending Act Consumer Cre...

Consumer Issues Primary Consumer Credit Protection Laws genera The J Truth-in-Lending Act Federal Trade Commission Consumer Lending Act Consumer Credit Card Act The Fair Credit Reporting Act Bureau of Consumer Equal Credit Opportunity Act Protection Fair Debt Collection Practices Act Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f, as amended borrow Requires creditors to make certain written disclosures concerning financial responsibilities (APRs, transaction Loading… fees, origination charges, etc.). Provides for civil and criminal penalties. Consumer Lending Act & For personal leases extended over four months. Obligation value must not exceed $50,000. Consumer Credit Card Act Amended TILA Places limits on interest rate increases and restrictions on fees (including late fees). Requires notice of rate increases and specifies when bills must be distributed. * Fair Credit Reporting Act (FCRA) * Regulates credit bureaus and provides for accuracy in credit reports. Amended by the Fair & Accurate Credit Transaction Act to provide for free annual credit reports. Equal Credit Opportunity Act (ECOA) be aware Prohibits credit discrimination on the basis of race, sex, color, religion, national origin, marital status, poverty, age, etc. Fair Debt Collection Practices Act (FDCPA) D Provides for fair and transparent notice in the collection of debts. Allows for a debtor to dispute the validity of a debt - within 30 days. Grants consumers a cause of action against a collector who violates the act and causes actual damage. Bankruptcy The Bankruptcy Code 3 types U.S.C. Title 11 Enacted by Congress in 1978. Article I, Section 8, of the United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies." O Chapter 7 Most Chapter 7 filings are “Voluntary” Filed by individual or business debtors requesting - discharge of debts due to inability to repay. Certain assets may be liquidated and debts owed to creditors repaid from this pot in proportional shares, though an administrator. Creditors usually receive little to none of the debt owed. 0 Chapter 13 All Chapter 13 bankruptcies are “Voluntary” Only available for individual debtors (& sole - proprietorships but not other businesses). Provides for a court-protected repayment plan over the course of several years. 8 Chapter 11 Available to businesses who wish to remain in operation rather than have their debts discharged. Idea is that businesses who remain in operation are more likely to be able to repay their debts. Typically the debtor business will negotiate a plan with all creditors and submit it to the Court for approval. Goal is to ”restructure” rather than force “discharge.”