How To Financially Protect Yourself 101

Josh was sad. He felt this way because his favorite ride at the amusement park was shut down due to it being unsafe. In the past five years, there have been numerous reports of passengers' sliding about in their seats because of loose seatbelts. Finally, the state cracked down on the firm controlling the park and shut the ride down until it was properly inspected to ensure that it's safe to operate again...

Many people may find themselves asking, "Why would I need protection? Why can't I just get what I paid for?" The truth is, every citizen of United States rely and depend on protect against fraud and abuse. As today's marketplace becomes more complex by the months, this makes it more important that we stay protected. Federal, state, and local governments have found it beneficial to pass laws intended to protect consumers. While federal laws protect consumers as a whole, state and local protection laws vary greatly across the nation. In this article, you will learn more about the different acts and agencies that are designed to help you from financial fraud from companies and businesses.

Federal, State, and Local Legislation Protection

Federal legislation covers a multitude of different areas in which consumers have found defects or problems. The purposes of some of the more pertinent federal laws are described below:

• Truth In Lending (Consumer Credit Protection Act) - Their purpose is to inform consumers on exactly what the credit charge is on purchases and loans. This is extremely important because creditors are required to report these charges. Credit costs must clearly be understood in both dollars and cents and as an annual rate in percent.
• Truth In Packaging (Fair Packaging and Labeling Act) - This is to help consumers compare goods fairly. This act requires that certain information be made known. This includes net contents, size of serving, list of ingredients (in the order of decreasing weight) and etc.
• Food, Drug, and Cosmetic Act - This is to ensure that consumers will be certain of the safety and purity of food, safety and effectiveness of drugs and overall safety of cosmetics. This act requires that these forms of products be truthfully labeled.
• Automotive Information Disclosures Act - This act helps consumers compare new automobiles safely. It also requires that manufacturers label each and every car by listing the suggested retail price, the cost of add-ons, and the total price for the vehicle.
• Child Protection and Toy Safety Act - This important act helps protect children from harmful goods, including toys. This act prohibits the shipment and subsequent sale of dangerous items that vary from state to state.
• Federal Hazardous Substances Labeling Act - This is to warn consumers of possible hazards by requiring that companies and businesses place warning labels on their packages. It requires labels that list harmful things as precaution for use and inform on first aid procedures in case of an accident.
• Textile Fiber Products Identification Act - This helps consumers compare textiles and fabrics. The act requires that labels on textiles list the fiber content by its weight and show the manufacturer's name and address.
• Fair Credit Reporting Act - This enables consumers to be able to look up information about them that are kept by a credit bureau. This act also enables consumers to ask credit bureaus for the source of the information in their file. Consumers can also ask for the names of those companies and businesses that ask for a copy of their credit report.
• Warranty Improvements Act (Federal Trade Commission) - This protects a consumer from warranties that are not honored. This act sets minimum levels for written warranties, the rules for creating written warranties before a sale occurs, and provisions for class-action suits if the promises of the warranty aren't fulfilled.

Consumer legislation at the state and local level can vary from state to state. There are some states that have passed many laws, decrees, and ordinances. Then there are others who lag behind. Unfair-trade-practice laws are intended to minimize or reduce practices such as false or misleading advertising, misrepresentation of goods and services offered, and the sale of defective merchandise within a state. The cure for these unfair practices can vary from legal action to business licenses being revoked.

Protection From The Government For Consumers

Government agencies have a job in which they must enforce consumer protection laws. In order to do so, they must set rules and regulations that involve business activities. Many of these rules and regulations affect consumers either indirectly or directly. This is one of the reasons why we have so many agencies. Let's start with a list of some of the federal agencies that serve the consumer:

• Civil Aeronautics Board (CAB) - The CAB regulates the rates and fares, promote the safety, and responds to complaints for air travel.
• Department of Agriculture (USDA) - The USDA set forth rules and standards for grades of meats, poultry, canned fruits and vegetables and dairy products sold in the United States. This agency allows consumers to be able to view information on food, clothing, and household equipment.
• Federal Trade Commission (FTC) - Made up of two bureaus, the bureau of Consumer Protection and Bureau of Competition, it serves two primary purposes. The first one handles consumer issues with advertising, credit, price fixing, and of course fraud. The second one handles the antitrust work of the FTC.
• Federal Communications Commission (FCC) - Responsible for making sure the proper procedures are set for radio and television broadcasting. They monitor advertising and protect against the indecent programming.
• Food and Drug Administration (FDA) - Established in 1906, it makes sure that there are laws and regulations on the quality and safety of food, drugs, and cosmetics. They are responsible for inspecting and grading food-processing and medical drug plants and they certify new drugs.
• Interstate Commerce Commission (ICC) - The ICC regulate the rates and fares for bus and train travel. They also promote safety for railroads and set quality levels for transportation of people, luggage, and etc.
• Office of Consumer Affairs - Formed in 1964, this committee helps the president on consumer affairs. Comprised of twelve members, the committee makes recommendations to the president on consumer protection and education.
• Securities and Exchange Commission (SEC) - The SEC supervise over the issues pertaining to the sale of stocks and bonds. Responsible for preventing fraud, it requires public disclosure of facts in the sale of securities.
• United States Postal Service (USPS) - Not only are they responsible for distributing mail to proper addresses, they help eliminate fraudulent practices through the mail. They also regulate the shipment of dangerous or obscene products and materials by mail.

State and local government agencies are also set up all over the country to further help with the safety for consumers. Many times, the state level is an extension of the attorney general's office. This helps to make it easier to prosecute violators of consumer protection laws. They also form together and delegate responsibilities for consumer protection. Here is a list of other private businesses, trade associations and citizen groups set up for consumer protection:

• Consumer Action Panels - Formed by trade associations, they represent businesses in certain industries to handle customer complaints in an orderly fashion when individual businesses can't do it for themselves.
• Arbitration Services - The Better Business Bureau, Inc is a private organization that helps settle customer complaints
• Consumer Affairs Departments - Many of the larger businesses have these departments in place. These departments are set up to handle customer complaints.
• Consumer Groups - Made up of mainly interested and concerned citizens, they can be formed at national, state, and local levels. They operate on the basis that through organized group action, they can be a viable force for consumers.