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. "
