Consumer Protection Laws « Loan Modifications

Consumer Protection Laws

There are a number of consumer protection laws which protect you from creditors taking advantage of you or misrepresenting information. The following is a short description of the most important credit laws:

The Fair Debt Collection Practices Act

is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you’re at work if the collector knows that your employer doesn’t approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact.

Fair Credit Reporting Act:

Cconsumers are able to receive one free credit report a year, and can verify what is reported about them. The free report can be requested by telephone, mail, or through the government-authorized website, annualcreditreport.com.

Truth in Lending Act

The Truth in Lending Act was created to protect consumers in credit transactions, by requiring clear disclosure of key terms of the lending arrangement and all costs.
The purpose of Truth in Lending is to promote the informed use of consumer credit, by requiring disclosures about its terms, cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. The act also provides consumers the right to cancel certain credit transactions that involve a lien on a consumer’s principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes.