CONSUMER PROTECTION LAWS

FEDERAL LAW:

◙  Credit Card Accountability Responsibility and Disclosure Act of 2009
◙  Identity Theft and Assumption Deterrence Act of 1998
 ◙  The Gramm-Leach-Bliley Act (GLBA)
◙  The Electronic Communications Privacy Act (18 U.S.C. § § 2510-2522)
◙  The Computer Fraud and Abuse Act
◙  Fair Credit Reporting Act (15 U.S.C. § § 1681-1681(v))
◙  Fair Credit Billing Act (15 U.S.C. § 1601-1666)
◙  Fair Debt Collection Practices Act (15 U.S.C. §1692)
◙  The Truth in Lending Act (15 USC § § 1681a-1681v.)
◙  US Mail and Wire Fraud Statute (18 U.S.C. § § 1343, 1345 (2001))
◙  Electronic Fund Transfer Act (15 U.S.C. §§ 1693)

◙  Frequently asked questions about debt collectors.

  Credit Car Accountability Responsibility and Disclosure Act of 2009
          The Federal Reserve's new rules for credit card companies mean new credit card protections for you. Here are some key changes you should expect from your credit card company beginning on February 22, 2010.

  Identity Theft and Assumption Deterrence Act of 1998 ("Identity Theft Act")
          The Act amended 18 U.S.C. §1028 by making identity theft a federal crime and directed the Federal Trade Commission to create and implement procedures in an effort to deter identity theft.
          Applies to those who "knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law."
              - The Federal Trade Commission is the agency responsible for implementing the Identity Theft Act.
         The following agencies have investigative authority:
              - US Secret Service
              - FBI
              - US Postal Inspection Service
              - Social Security Administration's Office of the Inspector General
              - The Department of Justice prosecutes
        The US Sentencing Commission reviews and amends federal sentencing guidelines regarding an identity theft conviction.
            Violations result in the following:
              - Maximum penalty of 15 years imprisonment and/or
              - Fine and forfeiture of personal property used or intended to be used when committing identity theft.

  The Gramm-Leach-Bliley Act (GLBA)

          The Financial Services Modernization Act of 1999
              - Subtitle A of Title V of the Gramm-Leach-Bliley Act places restrictions on financial institutions when disclosing consumer financial information to nonaffiliated third parties.  The Act requires financial institutions to give notice to their customers regarding its information-collection and information-sharing processes. The Act provides when consumers may or may not opt out from sharing their financial information to the third parties.

              - The whole act is divided into two web pages:
                  - http://www.ftc.gov/privacy/glbact/glbsub1.htm
                  - http://www.ftc.gov/privacy/glbact/glbsub2.htm

    Pursuant to the GLBA, the FTC implemented the Safeguards Rule
              - Its stated purpose is to set "forth standards for developing, implementing, and maintaining reasonable administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of consumer information."
              - Establishes standards for financial institutions under its jurisdiction to safeguard their customers' information, which is defined as "any record containing nonpublic personal information."
             - Effective May 23, 2003

  The Electronic Communications Privacy Act (18 U.S.C. § § 2510-2522)
          Prohibits the interception of oral, wire, and electronic communications.
          Brought as a civil action, you may recover preliminary and other equitable or declaratory relief.
          The Attorney General may bring a civil action in district court to enjoin anyone who is engaged or will be engaging in a prohibited interception.

  The Computer Fraud and Abuse Act (18 U.S.C. § § 1030
          Deals with fraud and related activity in connection with computers.
          Applies to those who (1) knowingly or intentionally without authorization or exceeds authorized access a computer and obtains specified information or (2) knowingly and with intent to defraud, accesses a protected computer and obtains specified information listed in the Act.
          Depending on the crime committed, punishment results in either a fine or imprisonment.

  Fair Credit Reporting Act (15 U.S.C. § § 1681-1681(v))
          Its purpose is to create "accuracy and fairness of credit reporting."
          The Act covers:
            - permissible uses of, information required in, disclosure of consumer reports
            - compliance procedures consumer reporting agencies must follow
            - disclosures to government agencies and consumers
            - procedures in case of disputed accuracy in a consumer's file
            - civil liability and jurisdiction
            - administrative enforcement
            - relation to state laws
          TRW Inc. v. Andrews , 534 U.S. 19; 122 S. Ct. 441; 151 L. Ed. 2d 339 (2001).
            - Under the Fair Credit Reporting Act, the statute of limitations generally begins on the date the liability arises, not when a party knows or has reason to know that he was injured. An exception occurs when the defendant "has materially and willfully misrepresented any information required under this title [15 USCS §§ 1681 et seq.] to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant's liability to that individual under this title [15 USCS §§ 1681 et seq.]" The statute of limitations runs for two years after the discovery of the misrepresentation. 15 USC §1681p
          Reynolds v. Hartford Fin. Servs. Group, Inc., No. 04-35695, 04-35279 (9th Cir. January 25, 2006) Under the Fair Credit Reporting Act, an insurance company must send the consumer an adverse action notice whenever a higher rate is charged because of credit information it obtains, regardless of whether the rate is contained in an initial policy or an extension or renewal of a policy.

  Fair Credit Billing Act (15 U.S.C. § 1601-1666)
          Its purpose is "to protect the consumer against inaccurate and unfair credit billing and credit card practices."
          This Act addresses the rights of consumers when anyone makes unauthorized charges (starting at $50) with their credit cards.

  Fair Debt Collection Practices Act "FDCPA" (15 U.S.C. §1692) 
          Generally prohibits debt collectors from using unfair or deceptive practices when collecting on overdue bills.
          Prohibits debt collectors from collecting overdue bills from the identity theft victim on the unauthorized charges the identity thief had made.

For more information on the FDCPA, refer to the following sites:

  The Truth in Lending Act (15 USC § § 1681a-1681v.)
          Its purpose is "to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this subchapter."
          The Act imposes civil liability for those who are in willful noncompliance or engage in negligent noncompliance.
            - For willful noncompliance, the violator is liable for
                - actual damages the consumer sustains because of the noncompliance, and
                - the cost of the action and reasonable attorney's fees.
            - For negligent noncompliance, the violator is liable for
                - actual damages the consumer sustains because of the noncompliance,
                - punitive damages, and
                - cost of the action and reasonable attorney's fees.

  US Mail and Wire Fraud Statute (18 USC §§ 1343, 1345 (2001)).
          Addresses fraud by wire, radio, or television (18 U.S.C. 1343)
          Injunctions Against Fraud (18 U.S.C. §§ 1345)

  Electronic Fund Transfer Act (15 U.S.C. §§ 1693)
          Establishes the rights, liabilities, and responsibilities of those involved in electronic fund transfer systems.

          "'[E]lectronic fund transfer'' means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, direct deposits or withdrawals of funds, and transfers initiated by telephone. "