Reviewed by Ian Lyngklip

Key Takeaways

  • Michigan has its own identity theft statute, not just federal law.
  • A business cannot cut your credit solely because you were a victim.
  • A lender that skips identity verification owes the charges, not you.
  • The three-day cancellation right covers refinances, not purchase mortgages.

There are several critical laws in place to help ensure that your rights as a consumer are protected, thus limiting the possibility that companies and financial institutions can take advantage of you. While there are many laws established, familiarizing yourself with some of the most important can help you stay alert in the event companies violate these laws or attempt to take advantage of you as a consumer. As such, the following blog explores some of the most critical consumer protection laws established and the importance of discussing your legal options with a Michigan identity theft & credit report lawyer to help you fight for the justice you deserve.

What Are Some of the Most Important Consumer Protection Laws?

One of the most important aspects of your standing as a consumer is your credit report. As such, many laws revolve around ensuring the accuracy of your report, such as the Fair Credit Reporting Act (FCRA). Not only does this ensure consumers the right to error-free reports and the ability to dispute any inaccuracies in the report, but it also limits who can access consumer reports. This helps protect the privacy of consumers.

Fair Debt Collection Practices Act

Another important law you should be familiar with is the Fair Debt Collection Practices Act (FDCPA). When you owe a debt, it’s easy to feel as though you have no rights during these matters. However, the FDCPA provides important regulations as to how third-party debt collectors can interact with consumers. Unfortunately, debt collectors are notoriously aggressive, and as such, the FDCPA has enacted rules prohibiting vulgar and abusive language, harassment, and misrepresentation by collectors when interacting with debtors.

Truth in Lending Act

Finally, the Truth in Lending Act was enacted to help ensure those looking to obtain lines of credit are provided with full transparency before agreeing to a loan. This ensures consumers understand the full terms and conditions of the loan before signing agreements, which in turn allows consumers to shop for loans and compare prices.

This law also provides you with a limited right to cancel certain loans after signing. In accordance with 15 U.S.C. § 1635, when a lender assumes security of the interest of the home you reside in, you have until midnight on the third business day after closing to rescind the transaction without penalty or reason. This right extends to refinancing, home equity loans, and home equity lines of credit on your principal dwelling. However, it does not extend to the mortgage used to purchase the home, or standard car or personal loans.

Laws Written Specifically for Identity Theft

While the statutes above provide general consumer protection, identity theft has its own layer of the law in addition, at both the state and federal levels.

Identity Theft and Assumption Deterrence Act

At the federal level, the Identity Theft and Assumption Deterrence Act of 1998 made identity theft a federal criminal offense in its own right, rather than only treating the bank or creditor as the victim. This impacts how the crime is treated, as it now recognizes the person whose information was unlawfully used as a victim, entitling them to protection.

Identity Theft Protection Act

Michigan has its own law in addition, and it is one that most Michigan consumers are unaware of. The Identity Theft Protection Act, 2004 PA 452, took effect in March 2005, and is codified under MCL 445.61. This law makes it illegal to use another person’s information with intent to defraud, to obtain credit, goods, services, money, property, medical records, vital records, or employment.

What Michigan Law Requires of Businesses

The more useful part of the Michigan act, for someone who has already been a victim of identity theft, is what it requires of companies. In accordance with MCL 445.71, a business cannot deny you credit or utility services, or reduce your credit limit, solely because you were the victim of identity theft when the business already knew you were one. That section also shifts the loss when a lender extends credit without reasonable procedures to verify who is applying, making the lender, rather than the consumer, responsible for the resulting charges and finance charges.

MCL 445.72 adds a separate duty: an organization that suffers a security breach involving personal information generally has to notify the people affected. Michigan gave consumers a breach notification right years before most states did.

What Should I Do if My Rights Are Violated?

If you experience any violations of your consumer rights, there are steps you should take to protect yourself. Generally, the most important thing is to document the violation as soon as possible. This can help prove that a violation of one of the consumer protection laws occurred.

Contact an Experienced Identity Theft Attorney

Next, you should contact an experienced consumer protection attorney with Lyngklip & Associates. Unfortunately, dealing with large companies, debt collectors, or financial institutions can be incredibly overwhelming for many, which is why working with our team is critical. At Lyngklip & Associates, we understand how difficult it can be to bring disputes and claims against big corporations, which is why we will do everything in our power to help you navigate these difficult times. Contact us today to learn how we can assist you during these difficult times.