Many Americans remember the 2007-2010 period as a time of considerable uncertainty. Nearly nine million Americans lost their jobs in this recession and some have not been able to recover though a decade has passed.
Some lost savings that had taken years to build up. Others lost everything: their homes, businesses, cars, friends, and even their marriages. The government launched a commission of inquiry tasked with finding probable causes for the recession. True to script, the commission came up with a report containing several causal factors in less than a year.
The inflated values of mortgages and tough economic times ultimately led to widespread defaults. Significant mortgage financing and investment corporations collapsed, people lost their jobs while top executives received millions.
The next section addresses some legitimate ways to safeguard yourself from the threat of debt and corporate-perpetrated consumer fraud.
Laws that Protect Consumers
Debt is an indispensable tool for economic advancement in present-day America. It is almost impossible to buy a house or a car or have access to quality education without credit financing. This eventuality is why banks and shadow-financing corporations play a pivotal role in the lives of many Americans today. You can end up accruing so much debt that it becomes impossible to not default on repayments. Fortunately, debt collection laws do offer protection from lenders and third-party debt collectors. Here are some of the primary laws designed to protect consumers:
Fair Debt Collection Practices Acts
The FDCPA refers to a set of debt collection laws that outline acceptable behavior for third-party consumer debt collectors. Consumer debts are debts you accrue for personal, family, or household use. Upon defaulting on such debt, corporate lenders usually sell the ‘bad debts’ to third-party debt collectors. The task of debt collectors is to retrieving any remaining loan amounts in entirety. In the past, debt collectors often made use of hard-tactics to recover consumer debts. Some tactics include forced entry into houses, forceful acquisition of valuable household and personal items, and so forth. FDCPA regulations safeguard you from any reckless acts that consumer debt collectors can perpetrate. Some rules set out in the FDCPA include limitations on how debt collectors contact you, on the hours of the day when such contact is acceptable, and on the allowable number of times for such communication. The list of FDCPA debt collection laws is elaborate and extensive. This outcome is why it is best to contact a consumer fraud attorney to assist you.
Debt Relief Regulations
Suddenly losing your job means you lose the ability to service urgent loans. For many Americans, this outcome has led to the loss of a house, a car, a business, family heirlooms, and so forth. Fortunately, you can make use of existing debt collection laws to safeguard most, if not all, your possessions. How so? By filing for bankruptcy. The law recognizes that corporate lenders operate by enticing consumers into taking on more and more debt. This outcome is why the law avails ample protection to personal property for anyone filing for bankruptcy. While filing for bankruptcy, you get to exempt a considerable portion of your property from ending up as collateral. Furthermore, a bankruptcy suit avails a wait period during which you remain safe from debt collectors in the employ of corporate lenders.
Debt is a fact of life. As such, it has become indispensable in the attainment of the American dream. Remember that this is not legal advice, but please don’t hesitate to call us for more information today.