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The Credit Card Accountability, Responsibility And Disclosure Act

Consumer complaints against credit card companies prompted Congress and the Obama administration to pass the Credit Card Accountability Responsibility and Disclosure Act (CARD) of 2009. Years of widespread confusing terms and false advertising led to a bill that contains several features that protect consumers against credit card abuse.

Limit on Interest Rate Hikes

CARD limits the number of interest rate increases credit car companies can make on existing balances. Credit card companies can only boost rates after promotions end and on contracts that include a variable interest rate. Any significant increases in a credit cardholder’s interest rate must include an advance notice of 45 days.

Legal Right to Opt Out

Since 2009, consumers have enjoyed the legal right to opt out of credit card agreements, if they reject significant changes in the terms set on their accounts. When you opt out of a credit card contract, you still have to pay off the balance under the old terms of the credit card agreement. However, CARD gives you five years to pay off the balance.

No More Manipulation of Young Adults

Before 2009, credit card companies used to swarm on college campuses like vultures swarm over a carcass. CARD ended the credit card company manipulation of vulnerable young adults. Credit card companies cannot issue credit cards to anyone under the age of 21, unless the young adult has an adult older than 21 co-sign the credit card agreement. CARD also imposed distance limits on credit card companies to keep the companies off college campuses.

Cap on Over the Limit Fees

Consumers have the legal right to opt-in to prevent over limit fees. Any credit cardholder that decides to opt-in for over limit fee protection has their credit card transactions denied, if the transactions exceed their credit limits. Moreover, fees that penalize consumers for going over credit limits cannot exceed the over charged amount.

Less Confusing Terms

At the core of CARD is the legal mandate to make credit card terms of agreements easier for consumers to understand. This legal mandate applies to the dates and times set forth in a credit card agreement. Credit card companies are prohibited from setting ambiguous deadlines for payments, as well as creating cutoff times before 5 p.m.on payment due dates. Late payments on holidays and weekends no longer are subject to late fees.

Prevent Double Cycle Billing

Credit card companies enjoyed years of double dipping on imposing finances charges. However, CARD prohibits credit card companies from calculating finances charges on previous billing cycles. Credit card companies must compute finances charges based only on the current billing cycle.

Full Disclosure on Minimum Payments

CARD requires credit card companies to inform consumers of the financial consequences of paying just the minimum amount owed each month. Credit card companies must provide consumers with information that describes how long it would take for consumers to pay off balances by sending minimum amounts owed.

New Rules for Gift Cards

Consumers receive gift card protection because of CARD. Gift cards cannot expire until five years after issuance. Companies that issue gift cards can no longer charge dormancy fees on cards consumers do not use for 12 months or more. Gift card issuers are not allowed to charge more than one monthly fee, but there is not a limit on the amount of the fee charged.

The passage of CARD issued a new era of consumer protection laws that have leveled the playing field between consumers and credit card companies. Contact a licensed consumer law attorney today if a credit card company has violated any of the statutes found in the comprehensive CARD act.

https://sierralitigation.com/credit-card-accountability-responsibility-disclosure-act/

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The Truth And Nothing But The Truth in Advertising

We take an oath to tell the truth in a courtroom, before testifying in front a jury of our peers. We promise prospective employers that our integrity includes telling the truth at work. We confirm our truthfulness at the altar by saying “I do.”

If we tell the truth as a matter of fact, then why do so many companies run misleading advertising campaigns?

There was a time in American commerce when false advertising received a pass from federal regulators and lawmakers. However, after decades of public pressure, the United States Congress has passed numerous laws that protect consumers against misleading marketing and advertising campaigns.

Truth in Advertising covers virtually every type of product manufactured and every type of service delivered within the United States.

Let’s review three areas of Truth in Advertising that receive widespread media and public scrutiny.

The Truth about Endorsements

Celebrity endorsements help companies build credibility among consumers. Unfortunately, some product and service endorsements cross the line that separates fact from fiction. Federal laws mandate that product and service endorsements must be truthful, without any hint of misleading information that prompts consumers to make purchases.

The Federal Trade Commission (FTC) publishes Guides Concerning the Use of Endorsements and Testimonials in Advertising as guidelines for companies to use in the development of marketing campaigns that involve endorsements and testimonials. The guides also help consumers make accurate buying decisions based on product facts, as advertisers must include information that describes to consumers the benefits and features of a product or service. Moreover, recent additions to the FTC Endorsement Guides require endorsers to reveal any compensation earned from making endorsements and offering testimonials.

False Health and Fitness Claims

Many health supplements and fitness plans fail to live up to the hype presented in print, as well as on radio and television. In response to false claims such as “You can look like this after 30 days,” the FTC has issued several regulations that protect consumers against false health supplement and fitness program advertising. Since 2000, the FTC has filed more that 200 cases that challenged the validity of claims made by health supplements and fitness programs. In addition to false health supplement and fitness program claims, food advertising has also received scrutiny by the FTC for making unsubstantiated claims about the health benefits of eating certain foods.

The FTC pays special attention to health supplements that produced adverse side effects in consumers. Although the Food and Drug Administration litigates cases against drug manufacturers that make false advertising claims, the FTC often gets the ball rolling by collecting evidence of negative health supplement side effects

FTC Green Guides

Going green is the new mantra to preserve the environment, but in far too many cases, going green means making cash by issuing false product and service claims. A rapidly growing number of Americans search for eco-friendly products such as recycled toilet paper and biodegradable trash bags. American companies have responded to the going green awareness by creating advertising that deceives consumers into believing they are purchasing eco-friendly products. Introduced in 1992, the FTC Green Guides most recently received an update in 2012. The 2012 update includes information that helps consumers differentiate between legitimate and false advertising claims that pertain to “eco-friendly” products.

If you feel a company has violated FTC Truth in Advertising guidelines, you should consider contacting a licensed attorney that has accumulated a strong record of winning consumer law cases. An experienced consumer law attorney understands the complex set of Truth on Advertising laws enforced by the FTC.

https://sierralitigation.com/truth-nothing-truth-advertising/

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How To Protect Yourself From Bait And Switch in 2017

Shortly after the advent of print advertising, someone with too much time on his or her hands came up with the idea called bait and switch. It started in the horse trading industry, when buyers arrived to purchase muscular stallions only to find a frail donkeys waiting in the barn. The penalty for bait and switch deception typically involved gunfire or a hanging.

We handle bait and switch scams a little differently in 2017.

Bait and Switch Defined

Classic bait and switch involves a business that advertises a product, but presents or delivers a product not as advertised. Let’s say you have your eyes set on a brand new car that usually costs round $30,000. You find an incredible deal online that has shaved $10,000 off the typical price of the car. However, when you arrive to the dealership, the deal is no longer available because the dealership ran out of stock. Bait and switch tactics historically have flourished in the grocery, restaurant, furniture, and home appliance industries.

Technology has created a new bait and switch monster that does much more than lies about discounted prices. Bait and switch in 2017 often involves complex customer agreements where companies add fine print that makes it easier to climb Mt. Everest than it is to benefit from a product discount or free product feature. Think of the thick user agreements handed out by cell phone providers, as well as the disclaimers at the bottom of print and electronic advertisements

How to Prevent Bait and Switch in 2017

Consumers have just a few strategies to combat bait and switch in 2017. First, you should call a store or shop in advance of your visit to ensure the business has the discounted product in stock. Online queries are a bit tricky, as you do not deal directly with a sales representative. Ask for the name of the sales representative, as well as record the day and time of your phone call. You need the information if you have to take the next step and report the company for its bait and switch scheme to the Federal Trade Commission (FTC). Consumers in the market for a new or used car should reference the videos uploaded to the FTC website that describe the marketing tactics implemented by car dealerships.

The FTC to the Rescue

The FTC diligently enforces bait and switch laws, but the agency needs consumers to provide accurate and timely information. Whenever you see or hear an advertisement, the laws mandates the advertisement must not mislead consumers in regards to both product features and the price of a product. Considered part of the Truth in Advertising statutes, bait and switch law applies to advertisements that run online, on buses, on billboards, in print and of course, on radio and television. The FTC pays special attention to advertisements that promote products that influence the health of consumers and their bank accounts.

When the FTC discovers a bait and switch scheme, the agency files legal action in a federal district court for the prompt and permanent removal of bait and switch schemes. The goal of the agency is to hit perpetrators hard financially to deter future acts of bait and switch scams. With the Internet taking a bigger slice of the national sales pie, the FTC has established guidelines that protect consumers against bait and switch tactics found online.

For bait and switch cases that pose complications or move too slow through the court system, you should consider contacting a licensed attorney that specializes in consumer protection law. This is especially true of a bait and switch scam that has caused health problems or considerable financial harm.

https://sierralitigation.com/protect-bait-switch-2017/

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How to Keep Your Health Records Private

You sail through the job interview process, or so it seems. Your dream job turns into a legal nightmare when the prospective employer holds something against you that has nothing to do with your professional credentials.

It has to do with your health.

Yes, many employers still dig deep into health records to vet job candidates. In addition to unscrupulous health background checks, virtually anyone can pry into your health history to compromise your privacy. However, because of the enactment of the 1996 Health Insurance Portability and Accountability Act (HIPAA), Americans have a health privacy bill of rights that keeps medical records sealed from public view.

The Kassebaum-Kennedy Act

Often referred to as the Kassebaum-Kennedy Act, HIPAA contains two titles that influence health care practices. Title I preserves the health insurance coverage of workers that change or lose their jobs. The second title of HIPAA is also known as the Administrative Simplification (AS) provision, which sets national standards for electronic health care transactions, as well as federally recognized identification for healthcare providers and employers. However, it is the privacy clause of the second title of HIPAA that ensures your medical records remained sealed. Title II of HIPAA legally defines the policies, guidelines, and procedures required for ensuring the security of health information that include civil and criminal penalties for violating any of the provisions mandated by HIPAA.

The Employment Implications of HIPAA

One of the most costly expenses employers face is providing healthcare coverage for workers. A growing number of employers have increased deductibles to offset the rising costs of healthcare insurance. Before 1996, many employers initiated extensive investigations into job candidate health histories to prevent the hiring of employees that would drive up healthcare costs. The investigations into medical records required little more than accessing a medical record database. HIPAA added provisions that severely penalize employers for accessing job candidate medial records and using the records to form hiring decisions.

Health Information and Identity Theft

The original intent of the privacy rule of HIPAA was to prevent employers and insurance companies from obtaining health information. Insurance companies used health records to establish policies or deny coverage to applicants that had debilitating illnesses or injuries. Employers delved into personal medical records to prevent the hiring of applicants that would increase healthcare costs. Yet, the most significant impact of the privacy rule has been the establishment of personally identifiable information, or PII. The establishment of PII has dramatically reduced identity theft and other forms of fraud that takes advantage of collected personal data. The Department of Health and Human Services has extended the privacy rule to include independent contractors.

How to Use the Privacy Rules

The privacy rule legally requires any individual or organization that uses your PII to notify you of the use of your personal health information. If you believe a violation of the use of your PII has occurred, you should contact the Department of Health and Human Services Office or Civil Rights (OCR). The OCR branch of the Department of Health and Human Services typically experiences a long backlog of claims filed by American citizens that have experienced medical record privacy invasions.

Never allow a prospective employer to access your medical records for determining your professional credentials. If your healthcare history ever falls into the wrong hands, take legal measures to punish the perpetrators by contacting a licensed attorney that specializes in enforcing the provisions mandated by HIPAA. A free initial consultation should provide you with a better understanding of where you legally stand under HIPAA.

https://sierralitigation.com/keep-health-records-private/

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Let’s Get Real: No More Deception in Real Estate Transactions

John Reed remembers a story told by his parents shortly after he entered the market to purchase a home.

“Mom and Dad talked a lot about how a real estate agent and a bank tried to drive up the price of a property they wanted to buy outside of Denver. This happened in 1962. When I said I wanted to purchase a home about 20 years later, my parents told me to read up on the Real Estate Settlement Procedures Act (RESPA).”

Before the passage of the Real Estate Settlement Procedures Act (RESPA) in 1972, homebuyers had to deal with home price collusion practices implemented by agents, brokers, and banks. The primary objective of RESPA is to educate homebuyers about real estate services, as well as prevent kickbacks and referral fees that substantially increase the cost of buying a home or parcel of land.

RESPA requires lenders and real estate agents to ensure homebuyers receive timely disclosures of every cost involved in the purchase of a home or property. The important real estate law that protects consumers also prohibits the costly practice of dual tracking and sets limits on the use of escrow accounts for down payments.

RESPA Gains More Legal Power

Originally under the legal auspice of the Department of Housing and Urban Development (HUD), RESPA became the legal responsibility of the Consumer Financial Protection Bureau (CFPB) in 2011. The Dodd-Frank Wall Street Reform and Consumer Protection Act prompted the change in the legal domain of RESPA. Formed as the result of the 2007-2008 financial meltdown, the CFPB published new rules that strengthened RESPA. The Dodd-Frank bill mandates that the CFPB publishes a single comprehensive disclosure form for every mortgage transaction that includes all of the disclosure requirements covered by the Truth in Lending Act (TILA). Regulation Z of RESPA presents all of the forms, as well as the timing required to file the forms under the CFPB.

Collusion No Longer Allowed

For decades, lenders, real estate agents, title insurance forms, and construction companies engaged in giving kickbacks that inflated the costs of buying a home or commercial property. The players involved in completing real estate transactions also implemented bait and switch pricing tactics that lured homebuyers into purchasing a home for far more than it was worth. RESPA legally establishes requirements that lenders must adhere to for offering mortgages secured by federally backed loans. The guidelines enforced by RESPA include refinancing, reverse mortgages, and home purchase loans.

Here are some other legal provisions of RESPA:

Follow established escrow accounting practices

Allow consumers to compare the GFE to the HUD-1/1a settlement statements at closing

Prohibits kickbacks or referral fees for service providers

Prevent home foreclosure when borrowers submit applications for loss mitigation options

Settlement Costs in Good Faith

For every closed-end reverse mortgage, lenders and brokers must provide homebuyers with the government approved Good Faith Estimate (GFE) form. The three-page document presents costs a homebuyer can expect to pay during the home buying process. Costs presented within a GFE form include title insurance, insurance premiums, credit report fees, and origination charges.

If you are in the market to buy a home or parcel of land, consider consulting with a licensed attorney experienced in handling complex real estate transactions. At the very least, you receive an overview of RESPA and the most recent reforms that protect consumers against price manipulations implemented by lenders and real estate agents. You do not have to deal with the blatant kickback schemes that John Reed’s parents had to deal with in 1962, but you still have to be aware of potential illegal price increases in the purchase of a home.

https://sierralitigation.com/lets-get-real-no-deception-real-estate-transactions/

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The National Traffic And Motor Safety Act

You have read or heard about massive recalls that involve automobiles and automobile parts. There is a legal reason why the recalls receive national publicity.

Passed by Congress in 1966, the National Traffic and Motor Vehicle Safety Act not only created the motor vehicle recall process, the landmark piece of legislation also set the standard for protecting consumers against automaker negligence. The act represented the first mandatory federal safety standards established for motor vehicles manufactured within the United States. Many automotive industry analysts attribute the passage of the act to the significant decline in the incidence of motor vehicle accidents

Addressing Public Health Concerns

The National Traffic and Motor Vehicle Safety Act of 1966 paved the way for subsequent legislation that protects consumers against specific health concerns. Drunk driving prevention statutes at the state level came about because of federally issued mandates derived from the passage of the National Traffic and Motor Vehicle Safety Act. The threat of withholding federal funds for road and highway construction has forced states to issue tough laws that create stricter law enforcement and increase the minimum age for drinking alcohol. Tough drunk driving laws also provide consumers with a legal means to recover monetary damages from the person or business responsible for a drunk driving accident.

Mandatory Passenger Protection Systems

Another impact made by the National Traffic and Motor Vehicle Safety Act involves the development of passenger protection systems. By using federal funds as motivation, the United States government has prompted states to pass tough safety belt laws that punish drivers and passengers for not wearing the vehicle safety restraint. Numerous lawsuits have stemmed from vehicle safety restraints that do not deploy quickly enough to protect drivers and passengers. Child safety and booster seats also fall under the legal domain of the National Traffic and Motor Vehicle Safety Act. The result of the various motor vehicle safety initiatives and prosecution of parties that fail to follow the federally issued mandates under the act has been a dramatic decrease in the number of child fatalities.

Legacy of the National Traffic and Motor Vehicle Safety Act

The recognition by the United States government for the need to protect consumers against the negligence of automakers prompted the passage of the National Traffic and Motor Vehicle Safety Act of 1966. Since the passage of the highly influential act, several agencies have formed to enforce automaker compliance with federally mandated motor vehicle safety regulations. The National Highway Transportation and Safety Administration (NHTSA) formed by the United States Department of Transportation is a direct result of the passage of the National Traffic and Motor Vehicle Safety Act. NHTSA initiatives include the highly publicized “Buckle Up America” week that promotes the use of motor vehicle safety restraints. Established in 1992, the National Center for Injury Prevention and Control has provided research data to back the efforts of policymakers to enact and enforce laws that enhance motor vehicle safety. Signed by President Clinton on November 1, 2000, the TREAD Act requires child seat restraint manufacturers to file early warning reports every quarter in response to receiving information of fatalities caused by defective child seat restraints.

Consumers that suffer injuries caused by automobile and automobile part manufacturer negligence have the legal right to seek monetary rewards by filing lawsuits. Before you take the big legal step, contact a licensed attorney that specializes in litigating motor vehicle-related injury and fatality cases. After a free initial consultation, you should have a much better idea on the how the National Traffic and Motor Vehicle Safety Act can help you win a motor vehicle liability lawsuit.

https://sierralitigation.com/national-traffic-motor-safety-act/

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Deceptive Trade Practices – How The Federal Trade Commission Prevents Them

As one of the most influential federal consumer protection laws, the Federal Trade Commission Act (FTCA) of 1914 continues to enforce antitrust statutes more that 100 years after President Woodrow Wilson signed the ground breaking legislation. The FTCA established the Federal Trade Commission (FTC), which thoroughly investigates consumer claims of fraudulent business practices and all other violations of consumer protection laws covered by current federal governance.

The Motivation for the FTCA

By the end of the 19th century, the American economy was dominated by large trusts that colluded to manipulate prices and control the supply of goods. President Theodore Roosevelt made busting up the trusts the primary goal of his administration’s agenda, which he accomplished by the passing of the 1890 Sherman Act. However, like most federal laws, the Sherman Act required subsequent statutes to strengthen the enforcement and compliance language of the original bill. In 1914, President Wilson expanded the legal power of the Sherman Act by signing the FTCA and the Clayton Antitrust Act.

Federal Trade Commission (FTC)

The FTC has the legal mandate to investigate consumer and business complaints that apply to unfair trade practices. FTC regulators also respond to congressional inquiries and merger notification filings. The investigations performed by the FTC can involve one company or an entire industry about legal issues such as false advertising and conspiracy to manipulate commodity prices. Action taken by the FTC to resolve consumer fraud cases range from seeking voluntary compliance to initiating federal lawsuits.

Bureau of Consumer Protection

The Bureau of Consumer Protection acts as the FTC’s primary weapon in the fight against unfair and deceptive business practices. Created by the FTC shortly after passage of the FCTA, the bureau enforces federal laws that pertain to the rules issued by the FTC. Cases pursued by the bureau include marketing and advertising deception, telemarketing fraud, identity theft, and improper financial product practices. The Bureau of Consumer Protection also manages the United States National Do Not Call Registry.

Bureau of Competition

Preventing anticompetitive business practices remains the heart of the FTC mission. The Bureau of Competition closely monitors mergers and acquisitions to prevent and eliminate the practice of unfair business collusion. Enforcement of antitrust laws also involves regulating non-merger business practices that harm consumers, such as invoking horizontal restraints and implementing agreements made between competitors that hinder collusion.

FTCA Mandates for the FTC

The FTCA gives the FTC broad power to keep the business competition field level. Under the clear language of the FTCA, the FTC must “prevent unfair methods of competition, and unfair or deceptive acts or practices in or affecting commerce; seek monetary redress and other relief for conduct injurious to consumers; prescribe trade regulation rules defining with specificity acts or practices that are unfair or deceptive, and establishing requirements designed to prevent such acts or practices; conduct investigations relating to the organization, business, practices, and management of entities engaged in commerce; and make reports and legislative recommendations to Congress.”

Use the FTCA to Stop Fraudulent Commercial Activity

The fight to break up large trusts started with Teddy Roosevelt, but the fight remains just as relevant in the 21st century. In fact, the United States government has initiated numerous cases against the collusion of companies that operate in several different industries. From preventing bank mergers to filing unfair business practices against two small businesses that form a partnership, the FTC remains a powerful consumer ally.

To pursue a consumer deception of manipulation case under the FTCA, hire a licensed attorney that has established a strong record of litigating consumer protection cases.

https://sierralitigation.com/deceptive-trade-practices-federal-trade-commission-prevents/

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Know Your Debt Collection Rights

Your cell phone rings and your heart begins to pound. No, your racing heart is not caused by a call from a secret admirer. Instead, your racing heart is caused by a phone call from a creditor that demands immediate payment of what you owe on a loan or credit card bill. Tired of the threats and intimidation, you choose to send the call to voice mail, which you will erase later, without listening to the contempt of the creditor.

You have another option and that is the protection of the federal law called the Fair Debt Collection Practices Act (FDCPA).

An Overview of the FDCPA

The general definition of a debt collector created by the FDCPA is any person or organization that uses “mail or other instruments of interstate commerce to collect a debt.” Protection under the FDCPA refers to family, personal, and household debt, not debt owed by businesses and non-profit organizations. The Fair Debt Collection Practices Act limits the times of the day when debt collectors are allowed to contact you. If you file a written request to cease creditor communication with you, the creditor must refrain from communicating with you. The FDCPA also requires a 30-day grace period that consumers use to dispute creditor debt claims. Above all, the important consumer protection law prohibits creditor harassment and intimidation

What the FDCPA Prohibits

Under the FDCPA, creditors are not permitted to contact consumers before 8 am and after 9 pm local time. Creditors that continue to harass consumer after receiving a written request to cease communication face stiff penalties enforced by federal regulations. Any intent to abuse or harass consumers by repeatedly calling and/or sending electronic mail messages is strictly prohibited under the FDCPA.

Here are some other prohibitions mandated by the FDCPA:

Attempts to communicate with consumers at their places of employment

Contact with a consumer who has established a formal legal arrangement with an attorney

Communicating with a consumer after a formal request for debt validation

Making a threat of arrest or taking legal action

Deceptive collection practices

Making a consumer’s name and address public knowledge

Using abusive language

Demanding payment for an amount not justified

Under the legal guidelines set forth by the FDCPA, creditors are not permitted to disclose your debt status with third parties that include the media. Creditors also pay a legal price for reporting false information on consumer credit reports.

What Creditors Must Do Under the FDCPA

During every time you communicate with a creditor, the creditor must make clear the communication is from a company debt collector or debt collection agency. Consumers must receive accurate information that concerns the name and address of the original creditor, as well as receive a legal notice that defines the right to dispute a debt. Creditors must provide documented confirmation of a debt in the form of a written statement that itemizes the purchases forming the total debt. Above all, a creditor must file a lawsuit in the proper legal venue.

The 2010 Dodd-Frank Act moved the enforcement of the FDCPA from the Federal Trade Commission (FTC) to the Consumer Financial Protection Bureau (CFPB). Many consumers report that the new agency has shortened the period it takes to resolve creditor abuse cases. Access the CFPB website to learn more about your debt collection rights.

Consumers that are victims to FDCPA violations have a legal recourse to seek financial damages. Contact a licensed attorney today who specializes in federal consumer protection law.

https://sierralitigation.com/know-debt-collection-rights/

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The Truth In Lending Act

If the American financial meltdown that began in late 2007 taught us anything, the lesson learned was that the Truth in Lending Act (TILA) represents one of the most important consumer protection laws ever passed by the United Sates Congress. After an extensive review of what caused the financial meltdown of 2007-08, it became apparent that unscrupulous lending practices by large banks played a huge role in greasing the financial gears that lead to a massive recession.

Millions of home mortgage applicants received loan approvals based on nothing more than a signature on a piece of paper. Banks approved loans to people who ordinarily would have seen their mortgage applications tossed the trash. Moreover, numerous banks were caught hiding fees and interest rate increases during the lifespan of home mortgage loans.

Overview of TILA

The primary objective for the Truth in Lending Act is to protect borrowers against unfair or deceitful lending practices implemented by banks and credit card companies. Every type of creditor must fully disclose the cost of loans approved, which includes fees and interest payments incurred during the lifespan of a loan or credit card agreement. The Truth in Lending Act comes into play the moment a borrower signs a promissory note or credit card contract. Loans that produce a lien that a lender holds on a borrower’s residence mandate a three-day grace period, which gives borrowers the opportunity to cancel a loan and not have to pay a severe financial penalty.

What Prompted the Truth in Lending Act?

TILA was initially drafted as Title1 of the Consumer Credit Protection Act. A separate bill passed in June of 1968 that strengthened the language of Title 1 in to give borrowers more protection against deceptive lending practices. From the day TILA became law until July of 2011, the Federal Reserve Board had the legal authority to issue regulations that banks must follow. After July 21, 2011, the regulation authority has fallen within the legal domain of the Consumer Financial Protection Bureau (CFPB). The Dodd-Frank Wall Street Reform and Consumer Protections Act of 2010 established the CFPB in direct response to the deceptive home mortgage lending practice that triggered the financial meltdown of late 2007.

How TILA Protects Borrowers

The Truth in Lending Act introduced borrowers to the Annual Percentage Rate (APR), which eliminated the deceptive interest rate calculations used by banks and credit card companies. For about 15 years, the APR provided borrowers with a clear way to calculate interest costs on all types of loans and issued credit. During the 1980s, United States auto manufacturers took advantage in a TILA loophole that required Congress to pass a separate bill that closed the loophole. TILA ensures borrowers benefit from a fair and timely resolution of credit card billing disputes. Although the Truth in Lending Act does not regulate interest rates, the federal banking law does mandate a standardized disclosure of all costs associated with loans and credit cards.

TILA regulations do not apply to credit extended for commercial ventures, as well as credit that is in excess of a threshold that the Consumer Financial Protection Bureau adjusts every year.

Contact a Licensed Attorney

The Truth in Lending Act is organized into several sections that can be difficult to understand for borrowers that are not familiar with bank lending terms. If you need assistance in a deceptive lending case, contact a licensed attorney that specializes in federal banking laws to help you navigate the landmark TILA. Ask for a free initial consultation to determine whether you are a victim of illegal lending practices.

  https://sierralitigation.com/truth-lending-act/

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How Product Safety Laws Protect Consumers

In September of 1982, Johnson & Johnson recalled every type of the company’s popular Tylenol products because someone tampered with the mostly pain medications by injecting deadly potassium cyanide into the pills. The deadly episode forced legislators at the federal level to modify product safety laws by changing the way drug companies package over the counter medications.

Dell recalled more than four million defective lithium-ion batteries in 2006. Manufactured by Sony, the batteries sparked fires in many of the laptops designed by Dell. The battery recall was at the time the largest safety recall ever for an electronics product.

Both product recalls protected consumers from further harm caused by tainted medications and defective batteries. The recalls are one example of how product safety laws protect consumers.

Consumer Product Safety Act (CPSA)

Passed in October of 1972 by the United States Congress, the Consumer Product Safety Act put some legal teeth into federal product safety laws. The CPSA created the United States Consumer Product Safety Commission (CPSC) to establish product safety standards and permit recall of products that the independent agency discovers to cause “substantial risks of injury or death to consumers.” Unlike a similar agency that had only limited enforcement powers 10 years earlier, the CPSC can ban a product if the agency believes there is not a feasible option other than a total recall and ban.

The agency has received legal powers to monitor more than 15,000 consumer products that include cases such as the Dell and Johnson & Johnson recalls. Products not covered under the CPSC’s legal domain include food, drugs, firearms, motor vehicles, and pesticides, among several other product categories. Federal agencies such as the Food and Drug Administration (FDA), the Department of Agriculture, the Environment Protection Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosive monitor product safety issues for the products that fall outside of the CPSC legal mandate.

In 2008, Congress passed the Consumer Product Safety Improvement Act, which protects whistleblowers against reprisals for raising awareness about product safety issues. Anyone who feels they have suffered retribution for publicizing the existence of a dangerous product needs to file a written complaint within 180 days of discovering the product deemed harmful or deadly for consumer use.

The Pure Food and Drug Act

Manufactured by Merck to treat arthritis, Vioxx received FDA approval in 1999. After receiving the results of a clinical study in 2004 that Vioxx increased the risk of a heart attack, the FDA issued a recall for the entire stock of Vioxx. Merck has lost almost $5 billion in lawsuits and settlements since the 2004 recall.

The Pure Food and Drug Act of 1906 represented the first in numerous consumer protection laws passed by Congress during the 20th century. Over the next 30 years, a growing number of politicians claimed the original act failed to cover new products that were introduced at a stunningly rapid pace. Signed by President Franklin Roosevelt in 1938, the Federal Food, Drug, and Cosmetic Act is the federal law that regulates products such as food, drugs, tobacco, cosmetics, medical devices, and radiation-release devices. The FDA has legal jurisdiction over these products that included Vioxx.

If you believe you are a victim of a defective product that caused injury or death, contact a licensed attorney that specializes in prosecuting violators of federal product safety standards. You might find myriad other litigants that have suffered similar product defects, which can lead to legal action for the entire class. Class action lawsuits for product safety lawsuits-especially pharmaceuticals-are often publicized through print and electronic media sources.

https://sierralitigation.com/product-safety-laws-protect-consumers/

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Federal Law And Consumer Credit Scores

With the exception of your Social Security number, no other number has more of an impact on your life than the impact made by your credit score. Credit scores influence lender decisions on whether to offer you credit cards and loans for big ticket items, such as a home and automobile. Even employers use credit scores as one factor in determining the qualifications of a job applicant.

The United States has a history of favoring lender rights over consumer rights. That is, until the passage of two landmark pieces of federal legislation that protects you against credit reporting fraud.

Fair Credit Reporting Act (FCRA)

Passed in 1970 and enforced by the Federal Trade Commission (FTC), the Fair Credit Reporting Act ensures the accuracy, privacy, and fairness of consumer information stored in the files created by consume credit reporting agencies. The guiding enforcement principle of the FCRA is to prevent the willful and/or negligent addition of inaccurate financial data in consumer credit reports. Under the FCRA, government oversight includes the thorough vetting of consumer credit reporting agency practices in regards to the collection and sharing of consumer credit histories.

The FCRA represented ground breaking consumer protection legislation. However, more than 40 years later, the United States Congress passed a bill that bolstered the enforcement teeth of the FCRA.

Fair and Accurate Credit Transactions Act (FACTA)

In a study released by the FTC in 2015, nearly 25 % of consumers discovered inaccurate and/or incomplete information in their credit reports. Before 2003, consumers had no legal recourse to rectify inaccurate credit reports. The Fair and Accurate Credit Transactions Act (FACTA) mandates that consumers have the right to receive one free copy of their consumer credit report from each of the three major credit reporting companies (Experian, Equifax, and TransUnion) every 12 months. Consumers request free credit reports online via the government approved website annaulcreditreport.com, as well as by mail or phone. FACTA also includes legal mandates to reduce identity theft, such as providing consumers with the capability to issue alerts for their credit histories if identity theft appears to have prompted a sharp drop in their credit scores.

How Do Consumers Order Free Credit Reports?

In a collaboration with the FTC, Experian, TransUnion and Equifax created annualcreditreport.com to act as a central digital clearinghouse for free credit report requests. The big three credit reporting companies also have set up toll free numbers to discuss free credit report questions with consumers. You can order your free credit report through annualcreitreport.com by making a request online or by calling 1-877-322-8228.

If mail is your preferred method of communication, send your free credit report request to the following address:

Annual Credit Report Request Service

P.O. Box 10581

Atlanta, GA 30348-5281

What Information Do I Need to Provide for a Free Credit Report?

If you want to receive a free credit report, you need to give each of the three major credit reporting companies your name, date of birth, address, and Social Security number. Consumers that have moved within the past two years must also provide the previous address. TransUnion, Experian, and Equifax ask questions that only you know the answers to secure your account. You might have to give answers to security questions such as the name of your first school or the city where you were born.

The importance of your credit report in all facets of your life requires you to remain vigilant for fraud and other types of illegal activities that diminish your credit worthiness. The federal government has created clear guidelines to protect consumer information. It is up to you to ensure the information is complete and accurate.

https://sierralitigation.com/federal-law-consumer-credit-scores/