Federal Law Protects You. Here Is How.
Most Americans do not know that federal law provides powerful protections against credit reporting errors, debt collector harassment, robocalls, and unauthorized bank transactions. These laws were written specifically to protect consumers -- ordinary people -- from corporate misconduct. And in most cases, they are designed so that enforcing your rights costs you nothing out of pocket.
This guide provides an overview of the four major federal consumer protection statutes that our firm works with every day. If any of these situations sound familiar, you may have a legal claim worth pursuing.
The Fair Credit Reporting Act (FCRA)
15 U.S.C. § 1681
What It Covers
The FCRA governs how credit bureaus, background check companies, and other Consumer Reporting Agencies collect, maintain, and distribute information about you. It also imposes obligations on the companies that furnish information to the bureaus and on the employers, landlords, and lenders who use consumer reports to make decisions about you.
Key Rights
- You have the right to accurate information in your credit report and background check reports
- You have the right to dispute inaccurate information, and bureaus must investigate within 30 days
- You have the right to know when information in your report has been used against you
- Employers and landlords must get your written consent before running a background check and must follow the adverse action process if they take action based on the report
- Identity theft victims have the right to have fraudulent information blocked within four business days
Damages
Actual damages, statutory damages of up to $1,000 per violation for willful noncompliance, punitive damages, and attorney's fees. The FCRA includes fee-shifting, meaning the defendant pays your attorney's fees if you prevail.
The Fair Debt Collection Practices Act (FDCPA)
15 U.S.C. § 1692
What It Covers
The FDCPA regulates the conduct of third-party debt collectors -- companies that collect debts on behalf of other companies or that purchase debts and attempt to collect them. It prohibits abusive, deceptive, and unfair collection practices.
Key Rights
- Debt collectors cannot call before 8 AM or after 9 PM in your time zone
- Collectors must stop contacting you at work if you tell them your employer prohibits it
- Collectors cannot threaten arrest, violence, or legal action they do not intend to take
- Collectors cannot misrepresent the amount of the debt, add unauthorized fees, or impersonate attorneys or government officials
- You have the right to send a written cease-and-desist, after which the collector must stop all communication (with limited exceptions)
- You have the right to request written validation of the debt within 30 days of first contact
Damages
Actual damages, statutory damages of up to $1,000 per action, and attorney's fees. Like the FCRA, the FDCPA includes fee-shifting, so the collector pays your attorney if you win.
The Telephone Consumer Protection Act (TCPA)
47 U.S.C. § 227
What It Covers
The TCPA restricts how companies can contact you by phone, text, and fax. It specifically targets robocalls, autodialed calls, prerecorded messages, and unsolicited text messages. The law also governs the National Do Not Call Registry.
Key Rights
- Companies generally cannot call or text you using an autodialer or prerecorded message without your prior express consent
- Marketing calls and texts require prior express written consent, which cannot be a condition of purchase
- You can revoke consent at any time by any reasonable means
- You have the right to register on the Do Not Call list and have telemarketers honor that registration
- Each call or text is a separate violation
Damages
$500 per violation, or $1,500 per violation if the conduct was willful or knowing. Important: unlike the FCRA and FDCPA, the TCPA does not provide fee-shifting for individual plaintiffs. However, because each call or text is a separate violation, damages can accumulate quickly, and many attorneys handle TCPA cases on a contingency basis.
The Electronic Fund Transfer Act (EFTA)
15 U.S.C. § 1693
What It Covers
The EFTA protects consumers who use electronic banking services, including debit cards, ATM transactions, direct deposits, and automatic bill payments. It establishes your rights when unauthorized transactions occur in your bank account and sets strict timelines for how banks must respond to error reports.
Key Rights
- Your liability for unauthorized electronic fund transfers is limited -- if you report the unauthorized transaction within two business days, your maximum liability is $50
- Banks must investigate error reports within 10 business days (or 20 business days for new accounts) and provisionally credit your account if the investigation takes longer
- Banks cannot require you to use electronic fund transfers as a condition of receiving a loan or other service
- You must receive clear disclosures about fees, error resolution procedures, and your rights
Damages
Actual damages, statutory damages of $100 to $1,000 for individual actions, and attorney's fees. The EFTA includes fee-shifting.
How These Laws Work Together
Consumer protection violations often involve more than one statute. Understanding how these laws overlap can be important for identifying the full scope of your rights. Here are some common examples:
- A debt collector reports false information to a credit bureau. This may violate both the FDCPA (which prohibits deceptive practices) and the FCRA (which requires accurate reporting). The consumer may have claims against both the debt collector and the credit bureau.
- A debt collector uses robocalls to contact you. If the calls are made without consent using an autodialer or prerecorded message, this may violate both the FDCPA (abusive practices) and the TCPA (unauthorized robocalls).
- An identity thief opens accounts that end up on your credit report, and a debt collector begins calling about the fraudulent debt. This may give rise to claims under the FCRA (failure to block fraudulent information) and the FDCPA (collecting on a debt you do not owe).
- Unauthorized charges appear on your debit card, and your bank fails to investigate properly, causing damage to your credit. This may involve both the EFTA (failure to investigate the unauthorized transfer) and the FCRA (inaccurate reporting).
Three of the four statutes discussed in this guide -- the FCRA, FDCPA, and EFTA -- contain fee-shifting provisions. This means that if you bring a case under one of these laws and prevail, the defendant is required by statute to pay your attorney's fees and litigation costs. This is why most consumer protection attorneys, including our firm, represent clients at no upfront cost.
The TCPA does not include fee-shifting for individual actions, but the per-violation damages of $500 to $1,500 can add up to substantial amounts, making many TCPA cases viable on a contingency basis.
The practical effect is this: in most consumer protection cases, you do not need to pay a lawyer out of your own pocket to enforce your rights.
Signs That Your Rights May Have Been Violated
Consider contacting a consumer protection attorney if any of the following have happened to you:
- You found errors on your credit report and the bureaus failed to fix them after a dispute
- You were denied a job, apartment, or loan because of inaccurate information in a background check or credit report
- A debt collector has called you repeatedly, threatened you, lied about the amount you owe, or continued contacting you after you asked them to stop
- You are receiving robocalls, automated texts, or telemarketing calls that you never agreed to receive
- Unauthorized transactions appeared in your bank account and your bank refused to investigate or return the funds
- You are a victim of identity theft and the credit bureaus are not removing fraudulent accounts from your report
What to Expect When You Call
If you contact our firm, the consultation process is straightforward:
- Free consultation. We will ask you to describe what happened and review any documents you have. There is no charge for this conversation.
- Case evaluation. We will evaluate whether you have a viable claim under one or more consumer protection statutes. We will be honest with you about the strength of your case.
- No upfront cost. If we take your case, there is no fee unless we recover for you. For fee-shifting cases (FCRA, FDCPA, EFTA), the defendant pays our fees if we prevail. For TCPA cases, we typically work on a contingency basis.
- Clear communication. We will explain every step of the process and keep you informed as your case progresses. You will never be left wondering what is happening.
If something in this guide sounds like what you have been experiencing, do not wait. Statutes of limitation apply to all of these laws, meaning there is a deadline to file your claim. For most consumer protection statutes, the deadline is one to two years from the date of the violation. The sooner you speak with an attorney, the stronger your position will be.