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WVU BCOR 320 - Chapter 28

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BCOR 320 1nd Edition Lecture 28 Fair Credit Billing Act:• Under the FCBA:– Credit card companies must acknowledge receipt of a complaint from a cardholder– Credit card company must investigate complaints and respond:• In case of error, by correcting the mistake and notifying the consumer• If there is no error, by writing to the consumer with an explanation• If the consumer requests it, the company must supply documentation of the transaction in question• The company may not try to collect the disputed debt while it is in investigation• The company cannot report to credit agencies that the consumer has an unpaid bill until 10 days after the responseDebit Cards: • Liability– Liability from a stolen debit card is much greater• Fees– Traditionally, banks would charge a flat fee of $20 to $30 each time cardholdersoverdrew their bank account– Under new rules, banks are not allowed to overdraw an account and charge thefee unless the consumer signs up for an overdraft planCredit Reports: • Accuracy of credit reportsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.– Consumer reporting agencies: Businesses that supply consumer reports to thirdparties– Consumer report: Any communication about a consumer’s creditworthiness, character, general reputation, or lifestyle that is considered as a factor in:• Establishing credit• Obtaining insurance• Securing a job• Acquiring a government license• Any other legitimate business need– Under the FCRA:• A consumer reporting agency cannot report obsolete information• An investigative cannot be ordered without first informing the consumer• Investigative report: Discusses character, reputation, or lifestyle and becomes obsolete in three months– A consumer reporting agency cannot report medical information without the consumer’s permission– An employer cannot request a consumer report on any current or potential employee without employee’s permission– Anyone who makes an adverse decision against a consumer because of a credit report must reveal the name and address of the reporting agency– A reporting agency must make a consumer’s report available upon request– A reporting agency must investigate and forward the data to the information provider any content reported to be inaccurate• Access to credit reports and credit scores– Under Fair and Accurate Credit Transactions Act (FACTA), consumers are entitled by law to one free credit report every year from each of the three major reporting agencies:• Equifax• Experian• Trans Union– Consumer advocates recommend that you do check your credit reports every year to make sure:• They are accurate • No one else has been obtaining credit in your name• Identity theft – A fraudster steals the victim’s personal information– Such as social security number, credit card information, etc.• FACTA created National Fraud Alert System– Permits consumers who feel they may be the victim of identity theft to place analert in their credit filesDebt Collection:• Under Fair Debt Collection Practices Act (FDCPA), collectors may not:– Call or write a debtor who has notified the collector in writing that he wishes no further contact– Call or write a debtor who is represented by an attorney– Call a debtor before 8:00 a.m. or after 9:00 p.m.– Threaten a debtor or use obscene or abusive language– Call or visit the debtor at work if the consumer’s employer prohibits such contact– Imply that they are attorneys or government representatives when they are not– Threaten to arrest consumers who do not pay their debts– Make other false or deceptive threats that would be illegal if carried out– Contact acquaintances of the debtor for any reason other than to locate the debtor (and then only once)– Tell acquaintances that the consumer is in debtEqual Credit Opportunity Act:• Prohibits any creditor from discriminating against a borrower:– Because of race, color, religion, national origin, sex, marital status, age (as long as the borrower is old enough to enter into a legal contract)– Because the borrower is receiving welfareConsumer Leasing Act:• Before a lease is signed, the lessor must disclose the following in writing:– All required payments, including deposit, down payment, taxes, license fees– The number and amount of each payment and how the payments are calculated– Balloon payments– Required insurance payments– Annual mileage allowance– The total amount the consumer will have paid by the end of the leaseConsumer leasing Act:– Available warranties– Maintenance requirements and a description of the lessor’s wear and use standards– Penalties for late payments– The consumer’s right to purchase the leased property, and at what price– The consumer’s right to terminate a lease early– Any penalties for early terminationManguson-Moss Warranty Act:• Does not require:– Manufacturers or sellers to provide a warranty on their products– Any supplier that offers a written warranty on a consumer product that costs more than $15 to disclose the terms of the warranty in simple understandable language before the saleConsumer Product Safety:• Consumer Product Safety Act – Prevents injuries in the first place– Created the Consumer Product Safety Commission (CPSC) that• Evaluates consumer products and develops safety


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