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If you buy or lease goods or services for personal or household use, you’re a consumer. Federal and state laws protect you in a wide range of situations. Many Americans aren’t familiar with their rights, though. Justia offers a free resource to guide them.
A web of federal and state laws shields consumers from fraud, abuse, and other forms of harm. For example, businesses cannot use deceptive practices like false advertising or charging undisclosed fees, while debt collectors and credit reporting agencies must follow certain rules. A consumer should know their rights so that they can assert them when needed. The Consumer Protection Law Center at Justia offers both practical advice and legal information. Here are some answers that it provides to questions that consumers might raise in various situations.
What Happens in a Product Recall?
A product recall usually happens when an item turns out to have a defect or another previously unknown issue that makes it unsafe for a consumer to use. Sometimes the manufacturer issues the recall, or sometimes the government orders it to recall the product. A consumer is generally entitled to a replacement for the item or some form of compensation. They also may have a products liability claim against the manufacturer if they got injured because of a defect in the item. Some defects occur during the design process, while others occur during manufacturing.
Can a Debt Collector Constantly Harass Me?
If the debt collector is not the party to which you originally owed the debt, the federal Fair Debt Collection Practices Act covers its conduct. (A creditor collecting its own debts generally is not covered.) The FDCPA protects consumers from certain abuses by third-party collectors, such as phone calls very late at night, constantly making the phone ring in an effort to harass them, providing false information to credit reporting agencies, or threatening the consumer that the collector will take legal action when this is not possible. State laws governing debt collection sometimes extend more broadly. Justia provides a 50-state survey on fair debt collection laws and some related statutes.
How Long Will Negative Information Stay on My Credit Report?
Under the federal Fair Credit Reporting Act, a credit reporting agency cannot keep most negative information on a consumer’s report for more than seven years after the date of the delinquency. However, this seven-year period runs from the date of payment for a tax lien. A credit reporting agency also can keep information about a bankruptcy in the consumer’s file for 10 years.
What Is the Cooling Off Period?
The Federal Trade Commission has enacted a Cooling Off Rule that generally applies to the sale, lease, or rental of consumer goods or services for at least $25 in a place other than the seller’s place of business. This allows a consumer to cancel the sale within three days and get a full refund. When the rule applies, the seller must tell a buyer about this right and give them two copies of a cancellation form with the sales contract. However, the Cooling Off Rule does not apply to sales online, by mail, or over the phone. States may have similar or broader laws.
How Can I Spot Identity Theft?
Some common signs of identity theft include unexpected charges on a credit card or withdrawals from a bank account, as well as calls or emails from debt collectors about debts of which you were unaware. You also might suspect identity theft if you no longer get bills or mail as usual. In the healthcare context, a consumer might get a bill for a medical procedure that they did not receive, or they might have a health insurance claim rejected because they allegedly reached their benefits limit.
How Should I Respond to Identity Theft?
If you find out that a fraudster has preyed on you, you should close or freeze any affected accounts and change your passwords and other security features of those accounts. More generally, you should ask the major credit bureaus for a one-year fraud alert. This means that a business cannot issue new credit in your name without checking your identity. You also should check your credit report for any fraudulent transactions so that you can report them promptly.
Can I Stop Telemarketers From Calling Me?
Yes, you can sign up for the National Do-Not-Call Registry, created by the Federal Communications Commission and the Federal Trade Commission. If you register your phone number there, telemarketers generally must stop calling you within 31 days. However, this rule has certain exceptions, such as when the consumer has agreed to receive phone calls from a certain business or has voluntarily established a business relationship with it. Political organizations and people conducting surveys also can call people on the Registry.
Will I Lose My Utilities if I Cannot Pay the Bill?
Consumers do not have an inherent right to utility services under federal or state law. Thus, you could lose your utilities if you do not keep up with payments. However, consumers often have some limited protections. For example, an electricity or gas provider might not be allowed to shut off services due to non-payment during extreme weather conditions, or during a health emergency. A utilities provider also might need to give certain notice to a consumer before terminating service based on non-payment.
Can I Get Rid of Student Loan Debt Through Bankruptcy?
You usually cannot get a discharge of your student loan debt through bankruptcy. Federal law provides for a narrow exception, though, if a debtor can show that this would cause an undue hardship to the debtor and their dependents. This tends to be a tough standard to meet. In many states, for example, the debtor must be unable to maintain a minimal standard of living if they do not get the debt discharged, they must have made a good-faith effort to repay the loan, and their situation must be unlikely to improve for a substantial part of the repayment period.
What Is a Class Action?
A class action is a type of lawsuit in which many consumers (or other types of plaintiffs) can pursue compensation from the same defendant after suffering the same or similar harm. This can provide a faster, cheaper path to compensation, and an attorney might feel more inclined to take the case because they probably would get a larger fee. However, a lawsuit must meet certain criteria provided by rules of civil procedure to get “certified” as a class action. After certification, potential class members generally will get notice and an opportunity to opt out. A class member can object to any proposed settlement, which must be approved by the court.
Final Thoughts
Consumers have strong protections against deceptive or unfair business practices, as well as crimes like identity theft. If you think that you lost money or suffered other harm because someone infringed on your rights, you should contact a consumer lawyer for personalized advice on your options. In the meantime, the Consumer Protection Law Center offers a readable overview of some key concepts in this area. Like the other Justia Legal Guides, it furthers our mission of making the law free and accessible to all.
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