What are the three specific areas of consumer activity that have become a focus of legislation under consumer protection laws?
The three specific areas of consumer activity that have become a focus of legislation under consumer protection laws are purchases by consumers, the use of consumer credit, and creditor remedies.
Purchases by Consumers
Consumer protection laws cover the sale of goods, services, and real estate for personal, household, or family use. In this context, some key legislation includes:
1. Federal Warranty Protection: This law applies to sellers who provide written warranties for consumer goods, ensuring certain features are guaranteed.
2. Lemon Laws: These laws provide rights to purchasers of new cars, allowing them to seek remedies if the vehicle has defects.
3. Consumer Right of Rescission: This right allows consumers to cancel certain contracts within a specified period without penalty.
The Use of Consumer Credit
Consumer credit transactions refer to credit agreements for personal, household, or family purchases. Relevant laws in this area include:
1. Federal Consumer Credit Protection Act (FCCPA): This law addresses discrimination in extending credit and includes various protections for consumers.
2. Truth-in-Lending Act (TILA): TILA requires disclosure of credit terms and charges to consumers, ensuring transparent lending practices.
3. Credit Card Bill of Rights: This legislation sets limits on interest rates, notifications, payments, and penalties for credit card users.
Creditor Remedies
Creditor remedies cover actions that creditors can take in case of consumer default. Some key aspects include:
1. Garnishment: Creditors can obtain a court order to garnish wages for debt repayment.
2. Security Interests: Sellers may retain security interests in goods sold with certain restrictions.
3. Debt Collection Practices: Laws prohibit abusive and deceptive debt collection practices, protecting consumers from harassment.
These areas of consumer activity have attracted significant attention from legislators and regulators to ensure that consumers are protected from deceptive practices, unsafe products, and unfair treatment in the marketplace.