How to Use Consumer Protection Laws

You never know when a problem might surface. And when it does, you can rest easy knowing that consumer protection laws are on your side. These laws are on the books in every state and they're designed to protect the consumer from deceptive and unfair practices. Once you learn the consumer protections laws that are out there, you can use them to your advantage.

Instructions

Difficulty: Moderate

1. Visit the Federal Trade Commission website. They have a department called the Bureau of Consumer Protection that solely focuses on, of course, consumer protection. Their website lists the laws that are available to protect you and they provide you with forms so you can file official complaints, if necessary.
2. Look at your loans. The Home Ownership and Equity Protection Act of 1994 requires lenders to disclose certain information regarding high priced mortgages. Automobile leases and furniture rentals are the topic of the Consumer Leasing Act of 1976 and the Truth in Lending Act. Leasing companies are required to disclose costs and conditions up front for long term leases.
3. Borrow with confidence. The Equal Credit Opportunity Act of 1974 prohibits any kind of discrimination in lending. You cannot be denied credit based on gender, race, sexuality and other factors that may be considered discriminatory.
4. Protect your electronic transfers with the Electronic Transfer Fund of 1978. Electronic payments as well as transactions with your ATM card, debit card and credit card are covered. This law gives you the right to dispute charges on your bank statement. It also sets a maximum out of pocket amount when your card has been used illegally. The law only applies if you report the theft in a timely manner. And, this law does not usually protect cards with predetermined values, such as a gift card.
5. Know your rights about debt collection. When you fall behind on your bills, you are still accountable for them. But there are still laws to protect you. The Fair Debt Collections Practices Act of 1977 protects consumers from aggressive debt collectors and sets strict rules that the collectors are required to follow.
6. Research the laws about bankruptcy. Bankruptcy and debt counseling are covered by several consumer protections laws. These laws provide bankruptcy assistance services and set rules for repayment schedules. Under this law, everyone involved can be held liable for fraud and negligence. This law provides advantages to the consumer and advantages to the businesses that could be involved.