The information covers a wide range of consumer issues, including debt collection, frauds and scams, identify theft, mortgage fraud, price gouging, and tenants’ rights, and each topic is explained in an easy to understand format.

While it is often necessary to consult an attorney to take specific action in an individual case, the information available from the Office of the Attorney General is a good starting place to educate yourself about your consumer rights under the laws of the State of Texas and the Federal government.

The Associated Press reports that Obama “said Americans are demanding it. ‘Those ridiculous contracts with pages of fine print that no one can figure out – those things will be a thing of the past,’ the president said in a statement accompanying the 152-page draft bill.” The AP adds Republicans “and bankers, however, already are balking and gearing up for a fight.” But Tom Quaadman, executive director of the U.S. Chamber of Commerce’s center for capital markets, said, “This isn’t only bad government but big brother lurking at everyone’s doorstep.”

The New York Times reports, “Banks and mortgage lenders are placing top priority on killing President Obama’s proposal to create” the financial consumer protection agency. Industry executives “vowed on Tuesday to fight Mr. Obama’s plan with everything they have, even though banks are still heavily dependent on many taxpayer-supported loans and loan guarantees to get through the crisis.” The “industry’s heated reaction presages an intense lobbying battle that is already beginning.”

From the American Association for Justice news release.

The Dallas Morning News recently reported the case of Chicago resident Lisa Dalton, who used a secured credit card to rebuild her credit after bankruptcy and divorce. She was able to obtain a secured credit card with a limit of $250 by making a deposit of $200. She used it for small purchases and paid if off each month, establishing herself as a responsible customer. The bank eventually raised her credit limit and after a few years, switched her to a conventional unsecured card. Her positive credit history helped her get a mortgage, open other credit cards with better terms, and finance part of her education to become a life and business coach.

Dalton’s experience is how secured credit cards are supposed to assist people in rebuilding their credit. Unfortunately, not all secured cards lead to such favorable results. John Ulzheimer, president of consumer education for Credit.com, warns that some cards charge very high fees in addition to the initial deposit. The first bill with some cards include fees that eat up most of the credit limit, which can hurt a person’s credit score instead of helping it.

Secured credit cards often charge high interest rates, with 19.9% being common, and the low credit limits make it easier to end up with over-limit charges. Many such cards also begin charging interest right after a purchase, offering no grace period for customers to pay off the balance without incurring interest.

When considering a secured credit card, be sure to get the best deal you can, bearing these factors in mind:

1. Check your credit score first. Even a score in the high 500s may qualify you for a traditional credit card, rather than requiring that you settle for a secured credit card.
2. Make sure the card issuer reports to the three major credit bureaus. If it doesn’t, the card won’t help you build your credit history or raise your credit score.
3. Look for a detailed list of all the fees you will be charged. Often, activation fees, annual fees, program fees, monthly servicing fees, and other charges can eat up most or all of the credit limit, leaving you with little room for spending and giving you a high balance-to-available-credit ratio that could harm your credit score rather than helping it.
4. Don’t settle for a sky-high interest rate. Some banks charge 19.9% or more for secured cards but some charge far less, and may even pay you interest on your initial deposit. Shop around for the best deal you can find.
5. Make sure your card offers a grace period before interest is charged. Some secured cards start charging interest immediately after a purchase is made, but there are many cards that offer the traditional 25-day grace periods most regular cards feature.

The companies that promise to clean up credit reports for a fee cannot deliver an improved credit report using the tactics they promote, and in fact, it is illegal. No one can remove accurate negative information from your credit report. If you see a credit repair offer, this is how to tell if the company behind it is up to no good:

–          The company wants you to pay for credit repair services before any services are provided. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the promised services.

–          The company doesn’t tell you your rights or what you can do for yourself for free.

–          The company recommends that you do not contact any of the three major national credit reporting companies directly.

–          The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

–          The company suggests that you invent a “new” credit identity, and thereby a new credit report, by applying for an Employer Identification Number to use instead of your Social Security Number.

–          The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

If you follow illegal advice or commit fraud, you may find yourself in legal hot water. It is a federal crime to lie on a loan or credit application, to misrepresent your Social Security Number, or to obtain an Employer Identification Number from the IRS under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or internet to apply for credit and provide false information.

To learn how to improve your creditworthiness and find legitimate resources for low or no-cost help, see “Credit Repair: How to Help Yourself” at www.ftc.gov/credit. To obtain free credit reports, visit www.annualcreditreport.com. You are entitled to one free credit report per year from each of the three major credit reporting agencies, and this is the only website that provides access to those reports at no cost.

Federal law imposes limitations on how debt collectors can collect debts, including time-barred debts. Under the Fair Debt Collection Practices Act (FDCPA), a “debt collector” generally is any person or organization that regularly collects debts owed to others. The term includes lawyers who collect debts for others on a regular basis, but it does not include creditors collecting their own debts.

Most courts that have addressed the issue have ruled that the FDCPA does not prohibit debt collectors from trying to collect time-barred debts, so long as they do not sue or threaten to sue you for the debt. If a debt collector sues you to collect a time-barred debt, you can have the suit dismissed by letting the court or judge know the debt is time-barred.

Whether a time-barred debt or any other debt can appear on your credit report depends on how long the debt has been delinquent. Debts that have been delinquent more than seven years cannot appear on your credit report, with certain exceptions. A debt collector may not try to collect a debt that has been discharged in bankruptcy, no matter when it was incurred. To learn more about credit reporting, visit www.ftc.gov/bcp/conline/pubs/credit/fcra.htm.

If a debt collector contacts you about a debt you believe to be time-barred, the debt collector must stop trying to collect if within 30 days of receiving notice of the debt, you send the debt collector a letter stating that you do not owe some or all of the money. If the collector gives written verification of the debt, the collector can renew collection activities.

You can stop debt collectors from contacting you about any debt, whether or not you owe it, by writing a letter telling them to stop contacting you. Once the collector gets your letter, it may not contact you again, except to say there will be no further contract or to let you know that the collector or original creditor intends to take some specific action, such as filing a lawsuit. Sending a letter does not absolve you of the debt if you actually owe it, and the collector or creditor still could sue you for the debt.