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

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Presentation transcript:

CONSUMER CREDIT

Basic Consumer Credit Laws Laws Protecting Against Discrimination Laws Protecting Your Credit Record Laws Protecting Against Billing Errors Laws Protecting Against Unfair Debt Collection

Credit Discrimination Prohibited Areas of Discrimination Race; Race; Color; Color; Religion; Religion; National Origin; National Origin; Sex; Sex; Marital Status; Marital Status; Age; Age; Public Assistance Income; Public Assistance Income; Exercise of Rights Under the Consumer Credit Protection Act

Fair Credit Reporting Act PRIG Study found PRIG Study found 80% of all Credit Reports have errors 80% of all Credit Reports have errors 19% of those errors were so bad to cause a denial of credit. 19% of those errors were so bad to cause a denial of credit.

Fair Credit Reporting Consumers are entitled to one free annual report. Consumers are entitled to one free annual report.

Fair Credit Reporting Act Major Credit Reporting Agencies Major Credit Reporting Agencies Equifax Equifax Experian Experian Transunion Transunion

Fair Credit Reporting Act Only inaccurate and out of date information may be removed. Only inaccurate and out of date information may be removed. Stale information must be removed Stale information must be removed Bankruptcies over 10 years old Bankruptcies over 10 years old Other Negative Credit Information over 7 years old. Other Negative Credit Information over 7 years old.

Fair Credit Reporting Act Removing Information Removing Information Letter to Credit Reporting Agency Letter to Credit Reporting Agency Send Certified Mail Return Receipt Requested Send Certified Mail Return Receipt Requested Singed by Consumer 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. 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. 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. Unauthorized Disclosure of Your Credit Information.

TEXAS EXEMPT PROPERTY Unlimited Homestead. Unlimited Homestead. Rural Homestead up to 200 acres Rural Homestead up to 200 acres Urban Homestead up to 10 Acres. Urban Homestead up to 10 Acres. Business Homestead Business Homestead Personal Property Personal Property Up to $60,000 in certain property. Up to $60,000 in certain property. IRAs IRAs

Fair Debt Collection Federal Fair Debt Collection Act Federal Fair Debt Collection Act Applies only to Third Party Debt Collectors including attorneys who regularly collect debts. Applies only to Third Party Debt Collectors including attorneys who regularly collect debts. Texas Debt Collection Act Texas Debt Collection Act Applies to Creditors & Third Party Collectors. Applies to Creditors & Third Party Collectors. Also a violation of Texas Deceptive Trade Practices Act 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. 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. 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. 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. May only communicate with attorney if Debtor is represented by an attorney.

Fair Debt Collection Communication with Third Parties May not disclose purpose is to collect a debt. May not disclose purpose is to collect a debt. May not use written communication that discloses they are collecting 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. May not contact debtor at employment if debtor advises it against employers policy.

Fair Debt Collection Abuse Examples Calling before 8:00 a.m. and after 9:00 p.m. Calling before 8:00 a.m. and after 9:00 p.m. Abusive Language Abusive Language Threatening action that cannot be legally taken. Threatening action that cannot be legally taken. Repeated telephone calls to annoy. Repeated telephone calls to annoy. In Texas cannot take homestead, cars, or threaten garnishment except for certain debts owing to government. 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? 1. If I think I may owe the Debt should I even bother to answer the suit? 2. Should I represent myself? 2. Should I represent myself? 3. If I think I owe the debt do I have a Defense? 3. If I think I owe the debt do I have a Defense? 4. Can I recover my fees and cost? 4. Can I recover my fees and cost? 5. Major corrupt practices in the debt industry. 5. Major corrupt practices in the debt industry.

The Financial Crisis Watch the short video on your computer Watch the short video on your computer BrokerLender Trust Rate Swaps Market

New Consumer Problems 1. Problems with who owns the debt. 1. Problems with who owns the debt. 2. Higher Credit Card Fees. 2. Higher Credit Card Fees. 3. Credit Reporting Problems. 3. Credit Reporting Problems. 4. More difficult to obtain new credit. 4. More difficult to obtain new credit. 5. Devaluation of assets. 5. Devaluation of assets. 6. Loss of Income. 6. Loss of Income. 7. Booming Tax Liability. 7. Booming Tax Liability.

Is it over?

Jim McMillen James T. McMillen James T. McMillen Red Mulberry Lane Red Mulberry Lane Houston, Texas Houston, Texas Tel: Tel: Fax: Fax: