The New Credit Card Law: Are We Really Alright?
August 5, 2009
President Obama recently signed into law a major new credit reform bill which, among other things, limits the ability of credit card issuing banks to crank up your interest rates, imposes restrictions on over-limit fees, mandates a minimum 21 days to make payment, and provides more transparency regarding payment terms and deadlines. All good.
But you don’t get something for nothing in politics, or in banking, unless you’re a CEO. So here’s the price we’ll have to pay for our new credit card protections:
Changes Coming to the FDCPA?
June 23, 2009
The National Consumer Law Center (NCLC) reports that the Federal Trade Commission (FTC) has proposed a dozen or so changes to the FDCPA, most of which would strengthen the FDCPA’s protection of consumers.
The proposed changes include:
1. Increasing from $ 1,000 to $ 2,000, the maximum statutory damage award – that is, the amount going to a winning consumer in addition to [or regardless of] actual damages.
2. Requiring disclosure that a timely written debt validation request by a consumer will suspend collection activities until the collector responds to the request.
3. Requiring a disclosure that the collector must cease contacting a consumer if the consumer requests it in writing.
4. Requiring collectors to obtain express verifiable consumer authorization before electronically dinging the consumer’s bank account for payments.
Other not so consumer-friendly proposals include:
5. Considering allowing cell phone calls if agreed to by the consumer; and,
6. Allowing email and IM contact, even though such personal contacts may not be allowed at work.
The NCLC reports that it is likely these proposals will be considered by Congress at some point, but doesn’t predict when.
More than ever before, people are using credit cards just to make ends meet. This leads nowhere good, and when you can’t keep up the payments, the collection calls begin. They’re annoying at best and downright nasty at worst. Knowing your rights can help you withstand the onslaught.
The federal Fair Debt Collection Practices Act [FDCPA] was enacted in 1978 to curb unscrupulous debt collection practices and it remains one of the strongest pieces of consumer protection legislation that we have today. Here’s what every consumer who is a target of debt collectors, or is likely to become one, should know about the FDCPA:
