Consumer Issues PDF

Consumer Issues Consumer Protection General Areas of Focus  Food & Drug Regulation under the FDA  Food Safety & Nutrition Labeling  Drug Safety & Effectiveness  Consumer Protection under the FTC  Regulation of Advertising  Deceptive versus Unfair Primary Consumer Credit Protec...

Consumer Issues Consumer Protection General Areas of Focus  Food & Drug Regulation under the FDA  Food Safety & Nutrition Labeling  Drug Safety & Effectiveness  Consumer Protection under the FTC  Regulation of Advertising  Deceptive versus Unfair Primary Consumer Credit Protection Laws  Truth-in-Lending Act The Federal Trade Co  Consumer Lending Act mmission  Consumer Credit Card Act The  Fair Credit Reporting Act  Equal Credit Opportunity Bureau of Consu Act mer Protection  Fair Debt Collection Practices Act Truth in Lending Act (TILA)  15 U.S.C. §§ 1601-1667f, as amended  Requires creditors to make certain written disclosures concerning financial responsibilities (APRs, transaction 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)  Prohibits credit discrimination on the basis of race, sex, color, religion, national origin, marital status, poverty, age, etc. Fair Debt Collection Practices Act (FDCPA)  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. WA Consumer Protection  WA Consumer Protection Act: RCW 19.86  Enforced by the WA Attorney General Bankruptcy The Bankruptcy Code  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." 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. 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. 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.”