Six Consumer Protection Laws Every Consumer Should Know

As the economy struggles, consumer protection is needed more than ever; the Federal Bureau of Investigation (FBI) reports credit card fraud among the top seven complaints in 2007. With this in mind, law enforcement encourages all consumers to know their rights under consumer protection laws.

Consumer protection laws are designed to protect credit users from:

  • Identity theft
  • Scams
  • Credit fraud
  • Internet fraud
  • Illegal telemarketing

The Six Consumer Protection Laws All Consumers Should Know

  1. Truth in Lending Act (1968)

    Creditors must inform consumers of any disclosures or terms when they open a credit card account. It also gives the consumer the right to cancel. This promotes:

    • Consumer protection through the legal regulation of credit cards
    • Awareness of credit card policies
    • No withholding of information by the creditor

  2. Fair Credit Reporting Act (1970)

    This consumer protection act allows credit users to retrieve a credit report from credit agencies. It encourages:

    • Fair and accurate consumer reports.
    • Consumer protection through legal procedures and standards.

  3.  Fair Credit Billing Act (1974)

    An amendment to the Truth in Lending Act (1968). This supports consumer protection by allowing consumers to dispute errors in billing. This act:

    • Encourages consumers to dispute a disagreeable claim
    • Discourages creditors from making inaccuracies
    • Provides consumer protection from creditor harassment
    • Promotes negotiations between the creditor and consumer

  4. Fair Debt Collection Practices Act (1977)

    This consumer protection act was passed to protect consumers from abusive, deceitful or unjust debt collectors. It encourages fairness and reduces:

    • Bankruptcy filings
    • Consumer complaints.

  5. Graham-Leach-Bliley Act (1999)

    A consumer protection act designed to protect a credit user’s personal financial information held by:

    • financial institutions
    • banks
    • security firms
    • credit unions

    This helps consumer protection by preventing:

    • Invasions of privacy
    • Identity theft
    • Debt or credit errors

  6. Fair and Accurate Credit Transactions Act (2003)

    An amendment of the Fair Credit Billing Act (1974), this consumer protection law allows credit users to obtain free credit reports by the three main credit companies:

    • Equifax
    • TransUnion
    • Experian

    The consumer protection act also has a series of provisions to:

    • Prevent identity theft
    • Improve creditor and consumer relations
    • Improve the accuracy of consumer records
    • Improve credit information

    Consumer protection laws regulate business between the consumer and companies. However, the credit user must file a report to the appropriate authorities to prevent illegal or abusive transactions. Ultimately, they are the ones who can increase the effectiveness of consumer protection laws.

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