If you have ever fallen behind on your credit card bills, you might have experienced abusive, unfair or deceptive practices when it comes to debt collection. Congress has found abundant evidence of this fact and has enacted many laws so that consumers will not experience abusive behavior from collection agencies, lawyers hired to collect on regular debt and companies who buy credit debt accounts and try to collect on them.
Federal Debt Collections Protection Act
Congress has passed the Federal Debt Collections Protection Act of 2006 in an effort to protect consumers from the unlawful harassment during debt collection. Through Congressional findings, they found harsh collection practices lent to a large number of bankruptcies, marriage instability, job loss and the invasion of privacy. The Federal Debt Collections Protection Act has stopped the abusive collection practices from debt collectors, insures those debt collectors who refrain from such abusive behavior are not disadvantaged from their job and promotes the continuation of state action to protect consumers from collection abuse.
CARD Act
Passed by Congress in 2009 and officially turned into law on February 22, 2010, the Credit Card Accountability Responsibility and Disclosure Act was enacted to provide full written disclosure of consumer accounts on their billing statement. The credit collection companies must provide information of rate increases, finance charges and notices of cancellation stated in legible type on the first page of the billing statement.
Federal Credit Reporting Act
Congress passed The Federal Credit Reporting Agency to provide consumers with accurate and fair credit reporting by banking systems concerning the credit worthiness, credit standing and reputation of the consumer, according to The Federal Trade Commission. Consumer reporting agencies must adopt reasonable procedures to insure fair commerce for credit, insurance and other consumer information.
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