What are Consumer Protection Laws?
Consumer rights and laws protect the individuals against any fraudulent or abusive commercial practices often adopted by traders. These consumer protection laws were made to protect the consumers against any unlawful acts or business by sellers by taking advantage of lack of knowledge of the consumers.
These consumer laws are planned and formed by the Federal Trade Commission, and are enforced by government agencies and lawyers once a case has been filed by the consumer.
These unlawful, unfair and fraudulent practices can be dealt with the consumer protection acts that have been categorized into various types, depending on their adversaries.
- Fair Credit Reporting Act (FCRA) – According to this act, the privacy of the consumer remains protected. Under this act the consumer’s credit information, credit report details and access to them are safeguarded. Any breach of data can result in the consumer filing a case under this law.
- Truth in Lending Act (TILA): this law helps in maintain transperancy in trades where lender and creditors are involved. This law has set rules and details regarding the information that needs to be given to the borrower before the deal is made.All these details also need to be mentioned on papers, before the consumer signs them.
- Fair Credit Billing Act (FCBA): This act will protect the consumer against any unfair credit practices by companies or institutions. Unfair practices such as placing a false charge on an account, billing the wrong account and other such practices are the ones from which the consumer is protected through this act.
- Fair Debt Collection Practices Act (FDCPA): Often debt collectors employ unlawful and unfair means of acquiring back their loan. This act protects the consumers from that. Through this act, the debt collector has been limited to the ways of collecting their debt.
- Magnuson-Moss Warranty Act (MMWA): Through this act the consumer is subject to knowing the details, exclusions, terms and conditions of any warranty that the seller or warrantor is claiming on a certain product. This act will protect the consumer should the seller fail to meet their claim.
- Identity Theft and Assumption Deterrence Act of 1998 (ITADA): This act protects an individual against identity theft, and accusation of any false case and treats the individual as a victim. Through this act the individual can claim for restitution for any allegation. Any institution or organization producing false documents could be charged under this act.
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