{"id":738,"date":"2021-11-11T10:00:00","date_gmt":"2021-11-11T16:00:00","guid":{"rendered":"http:\/\/www.lexingtonlaw.com\/blog\/?p=738"},"modified":"2024-11-13T13:52:56","modified_gmt":"2024-11-13T19:52:56","slug":"history-consumer-rights-improvements","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/credit-repair\/history-consumer-rights-improvements.html","title":{"rendered":"A history of consumer rights and improvements"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice.<\/em> See Lexington Law\u2019s editorial disclosure for more information<\/em><\/a>. <\/p>\n\n\n\n

Consumer credit protection laws regulate creditors and lenders so they don\u2019t take advantage of their customers with unfair fees, lending practices or methods of collecting payment. Of course, consumer rights were not always formally recognized. <\/p>\n\n\n\n

Before the 1960s, the concept of consumer rights was virtually nonexistent. There were no protective measures to help consumers when they dealt with creditors, credit reporting or even credit repair.  Individuals who were often the most desperate for help were taken advantage of by predatory lenders and creditors. As consumerism took a sharp spike upward, the government recognized that legislation would need to be put into place to protect consumers.<\/p>\n\n\n\n

Keep reading for a complete overview of the history of consumer rights, or skip to the end to see a graphic summing up the most important points. <\/p>\n\n\n\n

1962: The Consumer Bill of Rights<\/h2>\n\n\n\n

In 1962, President Kennedy introduced to Congress the need for consumer rights protection. This resulted in the Consumer Bill of Rights, which started with four main points. Those points were:<\/p>\n\n\n\n

    \n
  1. The Right to Safety:<\/strong> The Right to Safety was introduced as a part of the Consumer Bill of Rights in 1972. This right states that consumers have protections against products that physically harm them (excluding automobiles). In response to this right, businesses have implemented product standards, warning labels and testing regulations. The Consumer Product Safety Commission (CPSC) enforces this right. <\/li>\n\n\n\n
  2. The Right to Information:<\/strong> Consumers have the right to complete and accurate information to make informed decisions before purchasing products or services. This right ensures companies don\u2019t participate in false advertising, must disclose in full any past issues with their product or service and must always include proper packaging. <\/li>\n\n\n\n
  3. The Right to Choose:<\/strong> Consumers have the right to choose between vendors and should have options when looking at products and services. The government can step in and encourage the market to always have options by outlawing price gouging and underselling and introducing patent and antitrust laws. <\/li>\n\n\n\n
  4. The Right to Be Heard:<\/strong> When consumers have an experience with a business they feel is unfair, they have the right to be heard. The Federal Trade Commission (FTC), the Better Business Bureau (BBB) and the U.S. Attorney General\u2019s office are just a few places where consumers can file complaints and concerns. <\/li>\n<\/ol>\n\n\n\n

    After just a few decades, by 1985, the Consumer Bill of Rights was expanded to include four other sections. <\/p>\n\n\n\n

      \n
    1. The Right to Basic Needs:<\/strong> All individuals have the right to basic needs, including access to essential goods and services like food, clothing, shelter, education, public utilities, healthcare and sanitation. <\/li>\n\n\n\n
    2. The Right to Redress:<\/strong> All individuals have the right to receive a fair settlement of any won claims, such as compensation for unsatisfactory services, broken goods or misrepresentation of goods or services. <\/li>\n\n\n\n
    3. The Right to Consumer Education:<\/strong> Consumers have the right to be given adequate information to make an informed choice about their goods and services. Additionally, lenders must tell consumers of their basic consumer rights and how to take advantage of them. <\/li>\n\n\n\n
    4. The Right to a Healthy Environment:<\/strong> Everyone has the right to live and work in an environment that\u2019s safe for current inhabitants and future generations. <\/li>\n<\/ol>\n\n\n\n

      1968: Truth in Lending Act (TILA) <\/h2>\n\n\n\n

      In 1968, the Truth in Lending Act (TILA)<\/a> was enacted by the federal government. The TILA is part of a collection of laws under the Consumer Credit Protection Act<\/a> (CCPA). The CCPA was created to protect consumers by enforcing fair reporting around credit and prohibiting deceptive advertising by creditors.\u00a0<\/p>\n\n\n\n

      The TILA protects consumers from unfair or incorrect credit card billing and charging practices. It also states that all lenders must clearly report to borrowers the total cost of borrowing money. This includes communicating the APR, any interest and fees over the entire span of a loan term, the number of payments required, any late fees and when they apply, prepayment loan restrictions and any other essential terms. <\/p>\n\n\n\n

      1970: Fair Credit Reporting Act (FCRA)<\/h2>\n\n\n\n

      Another part of the CCPA is the Fair Credit Reporting Act (FCRA)<\/a>, introduced in 1970. The FCRA protects consumer information collected by credit report agencies and used by credit bureaus, medical information companies and tenant screening services. <\/p>\n\n\n\n

      The FCRA has two main focuses. The first is to ensure that no one other than qualified and approved parties can access a consumer\u2019s credit information. The second purpose is to hold credit bureaus responsible for keeping accurate credit data on consumers. This means that:<\/p>\n\n\n\n