About Consumer Law

Consumer law is a field of the law that encompasses many different types of cases, including credit reporting problems, auto dealer fraud, unlawful debt collection practices, and other disputes with merchants. The unifying feature of consumer law is a recognition that consumers are entitled to the benefits afforded by special consumer protection statutes, such as the federal Fair Credit Reporting Act, and the Oregon Unlawful Debt Collection Practices Act.

These statutes serve a two-fold purpose: first to fully compensate consumers for any losses incurred as a result of conduct which violates the law; and second, as a regulatory mechanism, by imposing civil sanctions on merchants that refuse to comply with the law — a principle referred to as the “private attorney general.” These objectives are met by statutes which provide for the recovery of out-of-pocket losses, attorneys fees, and, in appropriate cases, punitive damages.

Unlawful Debt Collection Practices

Unlawful debt collection practices are regulated by a patchwork of state and federal laws. The basic principal of fair debt collection law is that a consumer who does not owe a debt should not be “dunned” with collection calls or letters. Even when a consumer does owe a debt, state and federal law recognize that collectors cannot engage in deceptive, harassing, or unfair debt collection practices.

False Credit Reports

The exponential rise in the use of consumer credit, and the increase in consumers with complaints about their credit reports has focused much attention and concern on consumer credit reports. The credit reporting industry, including the credit bureaus or credit reporting agencies, the credit grantors, and the credit information providers, are subject to their own federal statute, the Fair Credit Reporting Act.

Identity Theft

With the advent of Internet e-commerce has come a growing awareness of credit identity theft. However, the fraudulent use of identifying information is not new. Consumers should certainly be very cautious about giving out credit card account numbers and other identifying information over the Web, but there are many other places criminals can obtain information about you. For example, some credit thieves steal mail from mailboxes, including checks sent out to pay bills, as well as credit card applications. Credit thieves can also obtain information from you by going through your garbage, such as bank and credit card statements. Some credit thieves are quite innovative — in Oregon, a department store employee was arrested for using a credit card reader to scan customers’ credit card accounts into her laptop.

Credit Reporting Problems

In spite of the nightly news coverage of credit identity theft, credit reporting problems can often be much more mundane. For example, a “merged” credit file can occur when two individuals have very similar identifying information. An easy example of a merged file is a father and son with the same first and last name. More often, however, it is not so simple. For example, John A. Smith’s credit accounts (or “tradelines”) may be reported onto John B. Smith’s credit report. Sometimes, there is even less rhyme or reason to these errors. Credit reporting agencies use complex computer algorithms to attempt to match consumers with credit information from many different sources, and errors are not uncommon.

Obsolete Credit Information

In addition to inaccurate information, certain information which is deemed to be “obsolete” also may not be reported. In general, credit information which is over seven years old is obsolete under the Fair Credit Reporting Act. Bankruptcy can be reported for ten years.