The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. We are a debt relief agency.

Consumer Law

Consumer laws were made to protect consumers from unfair trade and business practices.

TRUTH IN LENDING ACT

Truth in Lending Act requires lenders (bank loan, mortgage companies) to fully and truthfully disclose all details of a loan to consumers. 

The required disclosures include:

¨ The amount of the payments, when payment is due and number of payments due

¨ Interest rates and annual percentage rate (APR) for mortgages

¨ Late charges, prepayment charges and any other charge

¨ If there is any service fee

¨ The total of all payments calculated by combining the amount financed and all other charges

TRUTH IN LENDING ACT

Truth in Lending Act requires lenders (bank loan, mortgage companies) to fully and truthfully disclose all details of a loan to consumers. 

The required disclosures include:

¨ The amount of the payments, when payment is due and number of payments due

¨ Interest rates and annual percentage rate (APR) for mortgages

¨ Late charges, prepayment charges and any other charge

¨ If there is any service fee

¨ The total of all payments calculated by combining the amount financed and all other charges

FAIR DEBT COLLECTION ACT

The fair debt collection act was created to eliminate abusive debt collection practices.

If you have ever felt like you have been harassed because of owed debts, or felt taken advantage of by a debt collection process, then it is time you know your rights and take action.

Helpful information can be found at the Federal Trade Commission’s Web site: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm.

Harassment. Debt collectors may not harass, oppress or abuse you or any third parties they contact. For example, they may not:

¨ use threats of violence or harm;

¨ publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);

¨ use obscene or profane language; or

¨ repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

¨ falsely claim that they are attorneys or government representatives;

¨ falsely claim that you have committed a crime;

¨ falsely represent that they operate or work for a credit reporting company;

¨ misrepresent the amount you owe;

¨ indicate that papers they send you are legal forms if they aren’t; or

¨ indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

¨ you will be arrested if you don’t pay your debt;

¨ they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or

¨ legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

¨ give false credit information about you to anyone, including a credit reporting company;

¨ send you anything that looks like an official document from a court or government agency if it isn’t; or

¨ use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

¨ try to collect any interest, fee or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;

¨ deposit a post-dated check early;

¨ take or threaten to take your property unless it can be done legally; or

¨ contact you by postcard.

 

Debt collectors can sue you for the debt.  You, or an attorney representing you, must answer the suit or the debt collector may win the right to get a garnishment against you.

FAIR CREDIT REPORTING ACT

 

Have you checked your credit report lately?

 

The purpose of the Fair Credit Reporting Act is to protect the way an individual’s personal information, such as his/her credit history, is used and shared. In addition, it gives an individual the right to see his/her credit report and the right to dispute the information.

Your credit report is important to you. It can be the deciding factor in you getting approved for a new home loan or whether you get that new job.

About Credit Reports and Scores

A credit report is a detailed file of an individual’s past and present credit history and certain personal information. A credit score ranges from 300 – 850. Credit reports and scores are created by credit reporting agencies (CRAs). They are used by businesses such as landlords, banks, credit card companies and employers to judge whether or not someone is a qualified candidate.

A credit report is created by using the following information:

¨ Your name and current and previous addresses

¨ Your past and present employers

¨ A list of past and present creditors (bank loans, credit cards, private loans, etc.)

¨ The date the credit card or loan was opened

¨ The original amount of the loan or credit card limit

¨ The current amount owed on a loan or current amount being used on a credit card

¨ If there are any late or delinquent payments

Consumers’ Rights

Here is a list of your rights concerning your credit report:

¨ You can find out what is in your file – On an annual basis each CRA (at your request) must give you a free report and a list of everyone who has used your file.

¨ You must be told if information has been used against you - If you have been denied employment, insurance, credit or anything else, you have the right to know what CRA was used.

¨ You can dispute inaccurate information in your file – If you report an inaccuracy on your file, the CRA must investigate the information from the source.

¨ Inaccurate information must be corrected or deleted

¨ You can dispute inaccurate information at the source – If you address the source about an inaccuracy they made to a CRA, the source must then send a notice to the CRA of the dispute or not report the information.

¨ Outdated information may not be used – Any information over 7 years old (except a bankruptcy, which stays on your report for 10 years) is not allowed on your credit report.

¨ Access to your file is limited – The FCRA only allows certain “need to know individuals” to have access to your report, such as landlords, employers, insurers and creditors. 

¨ Your consent must be provided to employers and for reports that contain medical information – Employers must have a written consent from you to access your credit report from a CRA. Also, your permission is required for insurers, employers and creditors to view any medical reports by a CRA.

¨ You may choose to exclude your name from CRA lists used for unsolicited credit or insurance offers –Unsolicited offers, made by creditors and insurers using your file information, must provide a toll - free number to be taken off this list.