The Fair Debt Collection Practices act clearly states what debt collectors and debt collection companies are allowed to do and what they can’t do. The Fair Credit Reporting Act clarifies what can be reported on a credit report, how long negative information can stay on a report and regulates the actions of creditors and credit reporting agencies. But what can a consumer do if they feel their rights have been violated?
As United States citizens, consumers must obey the rules set forth by the government. Banks, credits reporting agencies, collection agents, credit repair companies, debt collectors are also obligated to abide by State and Federal Laws. Consumers who feel their rights have been violated have several legal outlets for assistance to remedy the situation.
Federal Trade Commission and the State's Attorney General
The Federal Trade Commission handles complaints regarding any business that is not abiding by the credit laws, including debt collectors, creditors, credit repair organizations and credit reporting agencies. Individual State's Attorney General Offices process complaints regarding any business doing business in their jurisdiction. Consumers can file a complaint with their state’s Attorney General as well as the state where the business is located.
Who Regulates Banks, Savings and Loans and Credit Unions
If the offending bank has the word “National” in their name, consumers may file a complaint with the Office of the Comptroller of the Currency. Most state banks are regulated by the Federal Reserve Board. For banks not regulated by the Federal Reserve Board, complaints can be filed with the FDIC.
Federal savings and loans (S&L) and federally chartered savings banks (F.S.B.) are supervised by the Office of Thrift Supervision. Complaints regarding violations of state and federal statutes may be filed here. Federal credit unions are regulated by the National Credit Union Administration.
Consumers may file complaints about local Federal Credit Unions who are violating State and/or Federal consumer protection laws with the National Credit Union Administration. If the credit union is not federally chartered, complaints can be filed with the State Credit Union Charter.
Better Business Bureau and Consumer Action
Rounding out the list is Consumer Action. This conglomerate is a national advocacy group that focuses on finance, credit, and telecommunications. The Better Business Bureau deals with and keeps records of complaints for all types of businesses. This consumer advocate group will also act as a liaison between a consumer and a business to help resolve the issue and/or complaint, especially if the company is a member of their local BBB.
If a consumer is not able to resolve the issue on their own, legal council is their best alternative. Many times attorneys can settle these types of cases out of court and can include repayment of attorneys’ fees if the consumer wins.
Additional Resources:
- Office of the Comptroller of the Currency - www.occ.treas.gov/customer.htm#Filing%20a%20Formal%20Complaint
- Federal Reserve Board - www.federalreserve.gov/
- FDIC - www.fdic.gov/
- Office of Thrift Supervision - www.ots.treas.gov/
- National Credit Union Administration - www.ncua.gov/ConsumerInformation/Consumer%20Complaints/fcucomplaints.htm
- State Credit Union Charter - www.ncua.gov/ConsumerInformation/Consumer%20Complaints/statechartered.htm
- Consumer Action - www.consumer-action.org/about/articles/contact_us/
- Better Business Bureau - www.bbb.org/
Katrina Rief-Derrico - Katrina has over 19 years experience in the housing industry and is forever the student. Holistic health and wellness is her passion.
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