CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting...

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CONSUMER CREDIT

Transcript of CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting...

Page 1: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

CONSUMER CREDIT

Page 2: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

Basic Consumer Credit Laws

Laws Protecting Against Discrimination

Laws Protecting Your Credit RecordLaws Protecting Against Billing ErrorsLaws Protecting Against Unfair Debt

Collection

Page 3: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

Credit DiscriminationProhibited Areas of

Discrimination Race; Color; Religion; National Origin; Sex; Marital Status; Age; Public Assistance Income;

Exercise of Rights Under the Consumer Credit Protection Act

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Fair Credit Reporting Act

PRIG Study found 80% of all Credit Reports have errors 19% of those errors were so bad to

cause a denial of credit.

Page 5: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

Fair Credit Reporting

Consumers are entitled to one free annual report.

Page 6: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

Fair Credit Reporting Act

Major Credit Reporting Agencies Equifax Experian Transunion

Page 7: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

Fair Credit Reporting Act

Only inaccurate and out of date information may be removed.

Stale information must be removed Bankruptcies over 10 years old Other Negative Credit Information over

7 years old.

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Fair Credit Reporting Act

Removing Information Letter to Credit Reporting Agency

Send Certified Mail Return Receipt Requested

Singed by Consumer Note it must be Received by Credit

Reporting Agency – Letter to Credit Furnisher (Creditor) may not take it off Credit Report. Failure to notify Credit Reporting Agency may protect them from later suit.

Page 9: CONSUMER CREDIT. Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing.

Fair Credit Reporting Act

Credit Reporting Agency has 40 days to verify information and if information is not verified it must be removed.

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Fair Credit Reporting Act

Unauthorized Disclosure of Your Credit Information.

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TEXAS EXEMPT PROPERTY

Unlimited Homestead. Rural Homestead up to 200 acres Urban Homestead up to 10 Acres.

Business Homestead

Personal Property Up to $60,000 in certain property.

IRA’s

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Fair Debt Collection

Federal Fair Debt Collection Act Applies only to Third Party Debt Collectors

including attorneys who regularly collect debts.

Texas Debt Collection Act Applies to Creditors & Third Party Collectors. Also a violation of Texas Deceptive Trade

Practices Act

Common Law Unfair Debt Collection

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Fair Debt Collection

All communication must advise debtor that they are collecting a debt and any information obtained will be used for that purpose.

First Letter must advise debtor that debtor has 30 days to request that collector verify the debt.

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Fair Debt Collection

Must stop all communication if debtor request that the debt collector stop communicating with the debtor– may only contact one other time to advise what action will be taken.

May only communicate with attorney if Debtor is represented by an attorney.

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Fair Debt CollectionCommunication with Third

Parties May not disclose purpose is to

collect a debt. May not use written communication

that discloses they are collecting a debt.

May not contact debtor at employment if debtor advises it against employers policy.

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Fair Debt CollectionAbuse Examples

Calling before 8:00 a.m. and after 9:00 p.m.

Abusive Language Threatening action that cannot be

legally taken. Repeated telephone calls to annoy. In Texas cannot take homestead,

cars, or threaten garnishment except for certain debts owing to government.

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Collection Lawsuits

1. If I think I may owe the Debt should I even bother to answer the suit?

2. Should I represent myself? 3. If I think I owe the debt do I have

a Defense? 4. Can I recover my fees and cost? 5. Major corrupt practices in the

debt industry.

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The Financial Crisis

Watch the short video on your computer

http://vimeo.com/3261363 Broker

Lender

Trust

Rate

Swaps

Market

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New Consumer Problems

1. Problems with who owns the debt. 2. Higher Credit Card Fees. 3. Credit Reporting Problems. 4. More difficult to obtain new

credit. 5. Devaluation of assets. 6. Loss of Income. 7. Booming Tax Liability.

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Is it over?

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Jim McMillen

James T. McMillen 14522 Red Mulberry Lane Houston, Texas 77044 Tel: 281-458-9100 Fax: 281-817-5505 Email: [email protected]

www.consumerlawoffice.com