The Fair Debt Policy

Fair debt policies define the rights of consumers in debt.

The fair debt policies and acts are a set of laws passed in the United States to protect the rights of citizens. These policies safeguard consumers from unscrupulous debt collectors, identity thieves and credit reporting agencies that cannot be contracted.

Fair Credit Billing Act

The Fair Credit Billing Act was passed in 1974. This policy requires that credit records be both accurate and updated frequently. The act also defines a means for consumers to contest billing errors.

Fair and Accurate Credit Transactions

The Fair and Accurate Credit Transactions Act was passed in 2003. This policy is designed to provide greater protections against identity theft, such as preventing whole credit card numbers from being printed on receipts. It also makes consumers whose identity was stolen not liable for the debts incurred by the identity thief.

Fair Credit Reporting Act

The Fair Credit Reporting Act was passed in 1970. The policy limits how consumer information can be used. It also allows consumers to request their own credit report.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act, passed in 1978, limits what credit collectors are allowed to do. Debt collectors are required by this law to provide proof of their ability to collect the debt and provide full documentation and details of the debt owed. The act also defines what constitutes harassment and creates penalties for harassing collectors.

References

• "Business Ethics: Ethical Decision Making and Cases"; O. C. Ferrell, John Fraedrich, Linda Ferrell; 2006
• "Fair Credit Billing Act"; Federal Trade Commission; 1986
• "Fair Credit Reporting Act"; Federal Trade Commission; 2004
• "Fair and Accurate Credit Transactions Act of 2003"; United States Treasury; 2003
• "Ultimate Credit and Collections Handbook"; Michelle Dunn; 2006

Resources

• "Economic Education for Consumers"; Roger LeRoy Miller, Alan Stafford; 2009