CONSUMER CREDIT
Basic Consumer Credit Laws
Laws Protecting Against Discrimination
Laws Protecting Your Credit RecordLaws Protecting Against Billing ErrorsLaws Protecting Against Unfair Debt
Collection
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
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.
Fair Credit Reporting
Consumers are entitled to one free annual report.
Fair Credit Reporting Act
Major Credit Reporting Agencies Equifax Experian Transunion
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Only inaccurate and out of date information may be removed.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.
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.
Fair Credit Reporting Act
Credit Reporting Agency has 40 days to verify information and if information is not verified it must be removed.
Fair Credit Reporting Act
Unauthorized Disclosure of Your Credit Information.
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
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
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.
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.
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.
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.
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.
The Financial Crisis
Watch the short video on your computer
http://vimeo.com/3261363 Broker
Lender
Trust
Rate
Swaps
Market
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.
Is it over?
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