Consumer rights Published Jan. 26, 2015 By Malmstrom Air Force Base Legal Office MALMSTROM AIR FORCE BASE, Mont. -- Airmen at Malmstrom Air Force Base are lucky to be in Great Falls, Montana. This is true in large part because the local community provides a wide array of services to the military and is supportive of the base's mission. However, there have been instances, even in Great Falls, where military members have been taken advantage of financially. That is why it is important that each military member know and understand their consumer rights. Below are some of the important laws that protect these rights. Dealing with Creditors Fair Debt Collection Practices Act: This federal statute protects consumers from harassment by debt collectors. It applies only to third party collection agencies, those hired by primary creditors to track down bad debts. Under the act, a collection agency may not: - contact individuals at work if their employer prohibits such communications - contact individuals if they are represented by an attorney - contact individuals at any unusual place or time; engage in any harassing, oppressive or abusive conduct; use any false or misleading representations - create any forms which lead the debtor to believe that someone other than the true creditor, such as a government entity, is asking for payment - make certain specific threats prohibited by law Notifying the debt collector in writing that the bill will not be paid or that no more communications is desired with the collector will severely restrict the debt collector's ability to contact and harass individuals. Fair Credit Reporting Act: Congress passed the Fair Credit Reporting Act in order to ensure accuracy of credit reports and to protect the consumer's right to privacy in connection with the preparation of such reports. If individuals have been denied credit, employment or insurance as a result of a bad credit report, the agency that turned them down must provide the name and address of the credit bureau that reported the negative information. Individuals then have 60 days in which to request, free of charge, a report containing the bureau's information and its sources. The accuracy or currency of the information may then be challenged. If information is inaccurate or obsolete, it must be removed from the bureau's records. Fair Credit Billing Act: In 1975, Congress passed the Fair Credit Billing Act to provide a means of resolving disputes that arise over errors on periodic statements received from creditors. It covers "open end" charge accounts such as credit cards and overdraft checking accounts. The act does not apply to loans for fixed amounts such as car payments. Some of the situations where the Fair Credit Billing Act might apply include: - charges not made by individuals or anyone authorized on the account - charges for the wrong amount - overdue bills mailed to an old address when individuals provided 20 days notice of their move - charges for goods or services returned or not accepted - charges for which an explanation or written proof of purchase was requested To be protected by the law, individuals must send a written error notice to the creditor within 60 days of their receipt of the billing error. Such notice must be separate from any payments and include name, account numbers, the nature of the billing error and a specific explanation as to how the bill is erroneous. The creditor must in turn acknowledge the challenge within 30 days. The creditor then has 90 days from receipt to investigate and either correct the error or provide an explanation of the charges. Servicemembers Civil Relief Act of 2003 A federal law that grants many protections to active-duty military members and their dependents such as: - Terminate a lease on real estate when member has permanent change of station orders, or orders to deploy for at least 90 days, as long as the member complies with certain other requirements, like providing timely written notice to their landlord. - Terminate cell phone and automobile lease contracts under certain circumstances like a PCS or deployment, if doing so substantially interferes with the member's ability to use the leased phone or vehicle. - Reduce interest rates on certain loans the member obtained before entering active duty to no greater than six percent. Military Lending Act This federal law protects active-duty military members and their dependents against predatory consumer credit services such as payday loans, vehicle title loans and tax-refund loans by: - Capping the annual interest rate at 36 percent including fees and charges. This is called the Military Annual Percentage Rate. - Ensuring that there are no prepayment penalties for paying off the loan early. - Banning the waiver of certain legal rights. Montana's Lemon Law The "New Motor Vehicle Warranty Act" of Montana exists to protect the buyer of a vehicle that is less than two years old and has less than 18,000 miles. If a vehicle under warranty has substantial defects that impair its use, market value or safety, and the issues are not adequately remedied by the dealership, the buyer can obtain a refund or a replacement. Resources Available to Victims of Consumer Fraud in Montana Cascade County District Attorney's Office - 406-454-6915 Federal Trade Commission - http://www.consumer.ftc.gov Military Consumer - http://www.military.ncpw.gov/ Montana Consumer Protection (Montana Department of Justice) - https://dojmt.gov/consumer For individuals that are the victim of consumer fraud, one of the greatest resources available is the opportunity to speak to an attorney about the issue. Individuals that would like to know more about consumer fraud, or have a specific case to discuss, can call the Malmstrom AFB Legal Office at 406-731-2878 to schedule an appointment.