Chapter 24 Consumer Law

Amendments to TILA's credit card rules in 2010

1. No retroactive increases on card balances unless account is 60 days delinquent. 2. 45 days advance notice before changing card terms. 3. Bills must be sent at least 21 days before due. 4. No interest rate changes except certain circumstances. 5. No over limit except specified situations. 6. Payments in excess of minimum amount must be applied to balance with highest interest rate. 7. No computing finance charges on previous billing cycle.

The basic requirements for non deceptive advertising

1. Truthful and not misleading 2. Substantiated claims 3. Can't cause substantial injury

Bait-and-Switch Advertising

Advertising one product (the "bait") at a very attractive price, then informing the customer that the advertised product is either unavailable or of poor quality, convincing the customer to purchase a different, more expensive product.

ECOA (Equal Credit Opportunity Act)

An amendment to TILA that makes it unlawful for any creditor to discriminate against any applicant on the basis of race, color, religion, national origin, sex, marital status, or age. Also prohibits discrimination on types of income.

FACT (fair and accurate credit transaction act)

An effort to combat identity theft. The Act established a national fraud alert system.

Bona Fide Error

An unintentional error such as clerical, mathematical, printing, or programming error

Energy Policy and Conservation Act requires automakers to:

Attach an information label to every new car and must include the EPA's fuel economy estimate.

CPSC (Consumer Product Safety Commission)

Conducts research on the safety of individual consumer products SMS maintains a clearinghouse on the risks associated with various products. CPSA is authorized to: 1. Set safety standards for consumer products 2. Ban the manufacture and sale of products with an unreasonable risk. 3. Remove from the market products immediately hazardous. 4. Require manufacturers to report hazards on products already sold or for sale. 5. Administer other product safety legislation.

Regulation Z

Implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.

FCC (Federal Communications Commission)

Independent regulatory agency that oversees electronic media.

FRCA (Free Credit Reporting Act)

Protects consumers against inaccurate credit reporting and requires lenders and other creditors report correct, relevant, and up to date information.

FDCA (Federal Food, Drug, and Cosmetic act)

Protects consumers against tainted and misbranded foods and drugs

CFPB (Consumer Financial Protection Bureau)

Regulatory agency charged with overseeing financial products and services offered to consumers

The Fair Packaging and Labeling Act

Required all consumer products to have true and informative labels and must include: 1. The product 2. The net quantity of contents 3. The manufacture 4. The package or distributor

TSR ("Telemarketing Sales Rule")

Required telemarketers to identify the sellers name, describe the product, disclose all material facts, cannot misrepresent information or facts AND must remove a consumers name from contracts if requested. An amendment created the Do Not Call Registry.

FDCPA (Fair Debt Collection Practices Act)

Requires collection agency to include a validation notice initially and Eliminates abusive collection practices including: 1. Calling debtors work when employer objects 2. Contracting debtor at unusual times 3. Contracting 3rd Parties not authorized 4. Harass or intimidate or make false or misleading statements. 5. Communicate with the debtor at any time after receiving notice that the debtor is refusing to pay except to advise the debtor of further action to be taken by collection agency.

TCPA (Telephone Consumer Protection Act)

Rule prohibiting telephone solicitation calls to a residence before 8:00 am or after 9:00 pm, regulates telemarketing calls. No automatic dialing or prerecorded voice.

FTC (Federal Trade Commission)

prevents the unfair, false, or deceptive advertising of consumer products and services

The Nutrition Labeling and Education Act

requires food manufacturers and processors to disclose uniform information about serving sizes and nutrients, and establishes standard definitions for various terms like low fat, lean or organic.

TILA (Truth in Lending Act)

requires lenders to disclose the terms of a loan in an understandable and complete manner. disclosures must be clear and meaningful.. Must disclose the finance charge and APR.