He that is of the opinion money will do everything may well be suspected of doing everything for money. - Benjamin Franklin
For many Americans, consumerism, or the use of products and services, and the ability to amass a great deal of debt have become our nature. Although there are only 292 million people living in United States, Americans remain the world's top consumers, spending trillions of dollars each year to look good, smell good, drive nice cars, and to live in nice houses no matter what the cost. Yet according to the Federal Reserve, we are trillions of dollars in debt for the first time in history. A record 1.6 Americans filed personal bankruptcy last year alone.
Nevertheless, as consumers we are entitled to protection under the law --- to receive fair treatment or protection for the products and services we buy. That's where Consumer Protection Law comes into play. Consumer Protection Law is just that laws that protect the consumer. Consumer Law covers disputes such as medical malpractice suits, personal injury claims, fair debt collection and bankruptcies, housing and landlord/tenant issues, bad product claims, predatory lending, identity (ID) theft, and other consumer concerns. This article will take a brief look at predatory lending, landlord/tenant issues, and your basic consumer rights.
Predatory Lending Unfortunately, predatory lenders often seem far less than predators. Actually, they can be very friendly, approachable, and seemingly easy to understand. However, all across America, families and individuals are losing their homes or investments because of predatory lenders, appraisers, mortgage brokers, or home improvement contractors. These predators usually target the elderly or low-income families that may be strapped for cash.
In general, the term predatory lending applies when excessive fees are added to a loan and not disclosed, or when a loan is refinanced at a high interest rate with no real long-term benefit to the borrower. State laws vary on their definitions, and there are statues in place to aid you if you have been the victim of abusive lending. You may be able to avoid falling into a trap by:
If you believe you have been a victim of predatory lending, don't be afraid to report a shady business or individual to the proper authorities such as your state's attorney general, the Federal Trade Commission, or the Federal Consumer Information Center.
Landlord/Tenant Disputes Landlord and tenant disputes generally occur over security deposits, evictions, or property repairs, and also vary from state to state. For example in Alabama, the Alabama Law Institute recently drafted changes to Alabama's landlord/tenant laws called the "Uniform Residential Landlord and Tenant Act" that became effective in January 2004. This act involves landlord-tenant relationships on residential property only.
In Alabama, tenants or landlords may terminate a lease for failure to make repairs, pay rent, etc. within 14 days of a written notice. Many states may limit the amount of a security deposit that landlords can charge a tenant. Previously, no "statutory" limit was established; however, under the new act, landlords cannot charge a security deposit over the cost of one month's rent. At the termination of the lease, security deposits are to be repaid to tenants within 21 days. If a landlord fails to do so, the tenant has the right to recover twice that amount plus reasonable attorney fees.
Regardless of state laws, all American consumers are protected under the Fair Housing Act of 1968 that makes it illegal for a landlord to discriminate on the basis of race, color, sex, religion, disability, family status or national origin. You also have a right to live in decent housing that is structurally sounds and up to building code.
Consumer Protection Act Under the Consumer Protection Act of 1986, American consumers are also entitled to: The right to safety: We have a right to be protected against the marketing of goods and services hazardous to our life and property.
The right to be informed: We have a right to know about the quality, quantity, standards, and price of goods or services for protection against unfair trade practices.
The right to choose: We have a right to have access to a variety of goods and services at competitive prices.
The right to be heard: We have a right to be heard and assured that our interests receive due consideration in appropriate forums.
The right to redress: We have a right to be compensated for unfair trade practices or restrictive trade practices or exploitation.
The right to consumer education: We have a right to be educated about products and services in order to make sound decisions in the marketplace.
In closing, CAVEAT EMPTOR: LET THE BUYER BEWARE. Consumer protection is necessary in today's society. As a consumer one of the best ways to protect you and your family is through prevention. So beware and use your buying power wisely.
As Earl Wilson says, "If you think nobody cares if you're alive, try missing a couple of car payments."
References
Alabama Law Institute. (December 2002). Uniform residential landlord and tenant act. Retrieved April 2, 2004.
Federal Trade Commission. (January 22, 2004). FTC releases top 10 consumer complaint categories in 2003. Retrieved April 2, 2004.
Online Publishers Association. (2002). U.S. market spending report.
The Quote Garden. Money. Retrieved April 2, 2004.
Thebharat.com. Consumer protection law: Introduction and definitions. Legal. Retrieved April 2, 2004.
The United States Census Bureau. (July 15, 2003). State and county quick facts. Alabama. Retrieved April 2, 2004.
Wilson, Bernice. B. (February 2002). Get to know your basic consumer rights: How do they work for you? Alabama Cooperative Extension System, UNP-40. Retrieved April 2, 2004.