Consumer Fraud, Debt & Collection

ASU Student Legal Assistance can answer any questions you have regarding consumer fraud, debt, and collection practices. This section provides only general information in each area, which may change depending on the current law. Therefore, ASU Student Legal Assistance urges students with questions or problems in this area to consult with the attorney.

All Sections

ASU Student Legal Assistance is available for consultation on any of the following areas:

Consumer fraud
what to do if you get scammed, or if someone is accusing you of scamming them
Consumer debt
unfair credit card company practices, managing your debt, fair credit reporting
Collection practices
how to recover money loaned to someone, what a creditor can legally do to collect money from you, how to challenge debt claims against you
ASU Student Legal Assistance urges students to learn more about credit card debt and managing their credit before they apply for any credit cards. If you have questions after reading the following information, please contact ASU Student Legal Assistance for an appointment.
Consumer fraud is a growing concern in an era where consumers no longer have to go to an actual store to buy the products they want. This section covers certain areas of consumer fraud and summarizes your rights under Arizona consumer protection laws. Please be aware that these laws are subject to change.
General Information
The Arizona Consumer Fraud Act protects consumers who buy goods from any merchant. The Act includes individual persons selling merchandise through classified ads. Under the Act, a buyer may recover any money or property lost from the purchase. A buyer may bring an action against the seller in court on his own if he bought the merchandise less than one year before he brings the action. Alternatively, a buyer may file a complaint with the Arizona Attorney General's Office, which is also authorized to bring an action against the seller.

The U.S. Fair Credit Billing Act protects your credit card charges whether made online, by phone, by mail, or in person.
  • If you find an error on your credit card statement, you may dispute the charge. You will not have to pay that amount while it is being disputed. Errors include the wrong amount, a charge for something you did not accept (like auto insurance through your credit card company), or something that was not delivered to your satisfaction.
Online Shopping
The dramatic increase of online shopping presents new problems concerning security. To protect yourself online, pay attention to the following:
  • Use a secure web browser to prevent your transactions from being interrupted. If you don't have one, consider paying for the merchandise using the phone or fax, or mail a check or money order.
  • Find out what the online company's refund/return policies are before you buy.
  • Be familiar with your online store. If you are trying out a new store, find out more information before using it. Ask around your community or do an internet search for any stories or reviews about that store.
  • Be selective about giving out your personal information. Does the company need to know your social security number? It is hardly ever necessary to buy an item, so be extremely careful when buying from a store that asks for this information.
  • Never provide your account password to anyone. When creating a password, do not use easily obtainable information such as your birth date, social security number, or telephone number.
  • Pay attention to the information you enter when ordering an online item, or you might find yourself stuck with ten copies of your favorite movie instead of one.
  • What is the company's shipping time? Sometimes you can have the item sent express mail for an extra fee.
  • Federal law states that the company must ship your order within the time stated in its ad. If no time is promised, the company must ship your order within 30 days after receiving your request. The company must ask for an extension when it goes beyond those 30 days, thus giving you the option to cancel your order.
  • Print a copy of your order and confirmation number and keep it for your records. Include the company's physical address, web address, and phone number in case you need to contact them again.
If you think you may have a problem regarding an online purchase, make an appointment with the ASU Student Legal Assistance office.
Telemarketing (A.R.S. § 44-1271 to 1281)
Many companies use telemarketing as a tool to provide goods and services. Some companies, however, use deceptive practices and misrepresent their products to promote sales. Both federal law and Arizona law govern some aspects of the telemarketing industry and protect you from telemarketing abuse.
  • Telemarketers may not call-block their numbers.
  • Arizona law limits automated random dialing.
  • A telemarketer may not intentionally dial a cell phone or pager.
  • You must consent to receive a pre-recorded message by saying "yes" at the prompt.
  • All telemarketers must maintain a "do not call" list. Under federal law, the telemarketer must put you on this list at your request and refrain from contacting you again for 12 months. If the telemarketer contacts you within the 12 month period, you may bring an action against the telemarketer to recover any money lost as a result of the contact, or an amount up to $500 per violation, whichever is greater.
  • Telemarketers must register with the Arizona Secretary of State's Office. This list is available to the public.
  • If a telemarketer violates any of these laws, you may file a complaint with the Arizona Attorney General's Office.
Credit cards are abundant, convenient, and, for many students, easily obtainable. This section addresses the use and abuse of credit cards, and your rights and obligations under the law regarding credit cards.
Accepting a Credit Card Offer
Do not accept every credit card offer you receive on campus, in the mail, over the phone, in the store, or over the internet.

You see the applications in the ASU bookstore bags; you receive applications in the mail. You may have received a phone call or two about applying for a credit card over the phone, or you may apply instantly for a credit card at your favorite department store. Beware of these carefully arranged marketing strategies. Do your research, read the brochures, and ask questions. Not all credit card "offers" are reasonable.

Ask about the interest rate, the annual fee, late charges, over-the-limit charges, application fees, and any required "security" deposits.
  1. Interest Rates
    • Interest rates are important if you carry a balance from month to month. If you pay your entire balance every month, and plan on doing so in the future, then the interest rate may not mean as much to you. In case of emergencies, however, it is best to shop around and find the lowest possible interest rate.
    • Low introductory rates are ideal if you charge a large amount in a short period of time or transfer an existing balance to the new account, and pay the entire balance before the end of the introductory period. Always look beyond the introductory rate. How high is the regular interest rate? 19%? 22%? 14.5%?
    • The credit card company has the authority to change your interest rate in accordance with our cardholder's agreement. Read the agreement carefully to see what those terms are.
  2. Other Fees
    • Look carefully at the application you received in the mail or at the store; is there an application fee? A processing fee? An annual fee? What charges should you expect to see on your first bill?
    • What are the late charges? When is a late charge assessed? The day after the payment is due? 5 days later?
  3. Other Terms and Conditions
    • What outside solicitations do you agree to receive as a cardholder? Many companies offer credit payment insurance, auto insurance, life insurance, roadside assistance, member catalogs, etc. You have the option to decline any of these solicitations by sending a written request.
    • Read the agreement for additional terms, conditions, and disclosures. If you disagree with any of these terms, do not accept the card.
Use Your Credit Card Responsibly
Some people use credit cards to support a lifestyle which they could not otherwise afford. This often creates serious financial difficulties. Because credit cards are convenient and increase your purchasing power, you can find yourself in financial trouble faster than you realize. Beware of these pitfalls:
  1. Do not use credit cards to support yourself if you are in a financial crisis. Additional debt responsibilities will not ease your financial situation.
  2. Minimum payments will cover the interest accrued on your balance and little else. A $1000 balance takes years to pay off making $20 monthly payments, and you end up paying substantially more than your balance.
  3. Make your payments on time. A late payment means more fees and a possible increase in your interest rates.
  4. Contact the company if you are making a late payment. Sometimes the company is willing to work with you.
  5. Save your receipts and use them to check your monthly statement to see if there are any unauthorized charges or incorrect amounts.
  6. The U.S. Fair Credit Billing Act (previously discussed) may help you dispute improper charges on your account.
Contact the ASU Student Legal Assistance office if you think you may have a problem with a credit card company.
The U.S. Fair Debt Collection Practices Act governs debt collector's practices. This section only summarizes your rights under the law, and the law is always subject to change. Consult with ASU Student Legal Assistance to obtain detailed information regarding your rights.

A debt collector is a collection agency, a creditor using a fictitious name to collect a debt, any party collecting a debt for a third person, and companies in charge of repossessing any items obtained from a creditor. The Fair Debt Collection Practices Act covers only debt collectors.

Creditors and their employees are not debt collectors. Similarly, retail stores, banks, finance companies, government employees, business creditors, and non-profit credit counseling services do not qualify as debt collectors.
Under the law, debt collectors cannot:
  • contact you during unreasonable hours, generally before 8 a.m. and after 9 p.m.
  • contact you in unreasonable locations, such as the hospital
  • contact you at work if your employer does not permit it
  • contact you if they are aware that an attorney represents you
  • inform people or companies, other than your spouse, your attorney, a credit reporting agency, the creditor, or any co-debtors, about your debt
  • threaten you with criminal acts, false information, or conduct for which they have no legal right to exercise
  • contact you without identifying themselves or truthfully identifying themselves
  • contact you by postcard
  • fail to contact you within 5 days of your request to produce validation of the debt.
To best secure your rights:
  • Do not completely ignore a debt collector. Although you are under no legal obligation to talk to them, you should use the initial contact to (1) obtain the collector's name, address, phone number and who they are collecting for, and (2) determine if you actually owe money by requesting a validation of the debt.
  • Request that all communications be put in writing, respond to the collector in writing, keep track of when you sent the correspondence, and keep copies of all communications between you and the creditor.
  • To stop a collector from contacting you, send a written request to the collector.
Arizona Law Governing Collection Agencies (A.R.S. §§ 32-1001 et seq.)
Under Arizona law, a person or entity may not conduct itself as a collection agency unless it is licensed in Arizona. The Arizona Banking Department provides a list of Arizona licensed collection agencies on its website. Consumers may file complaints with the Banking Department if they have a complaint about an unlicensed agency conducting business in Arizona.

In addition, a consumer may file a complaint regarding a collection agency if s/he feels that the agency is not complying with the law. The Banking Department will conduct an investigation after the complaint is filed.

Under Arizona law, a collection agency must provide the consumer with:
  1. The name of the creditor
  2. The time and place of the creation of the debt
  3. The merchandise, services or other things of value underlying the debt
  4. The date when the account was turned over to the collection agency by the creditor.
The agency must also provide the debtor, upon request, with copies of any document relevant to the debt or its collection. The debtor also has the right of access to the collection agency's books and records regarding the debtor or the debt. The collection agency has a duty to investigate debt disputes if the debtor has a reasonable claim that s/he does not owe the debt.
If you are having problems with a debt collector, or think you may have a problem with one, contact the ASU Student Legal Assistance office.

Recent amendments to the Fair Credit Reporting Act (FCRA) require each of the three nationwide credit reporting companies to give a consumer one free copy of his or her credit report every 12 months, when the consumer requests it. The three nationwide consumer reporting companies have set up one central website, toll-free telephone number, and mailing address through which you can order your free annual report. To order, go to AnnualCreditReport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

The Federal Fair Credit Reporting Act also allows you to obtain a copy of your consumer credit report from any consumer credit reporting agency for a reasonable charge. The FCRA also states that individuals are entitled to receive a disclosure directly from the consumer credit reporting agency free of charge if you have been denied credit, insurance or employment in the past 60 days as a result of your report.
Contact any or all of the following agencies to obtain a report
Experian
Mail: Experian
P.O. Box 2104
Allen, TX 75013-2104
Phone: 1-888-397-3742
Trans Union
Mail: Trans Union LLC
Consumer Disclosure Center
P.O. Box 2000
Chester, PA 19022
Phone: 1-800-888-4213
Equifax
Mail: Equifax
P.O. Box 740241
Atlanta, GA 30374
Phone: 1-800-685-1111
Requests should include the following
  • First, middle and last name (including Jr., Sr., III)
  • Current address
  • Previous addresses in the past 3-5 years, if any
  • Social Security Number
  • Date of birth
  • Current employer
  • Phone number
  • Signature
  • Applicable fee
Once you obtain a copy of your credit report, review it carefully. If you think the credit report incorrectly reported some information, or if you suspect that your credit report reflects actions taken by someone other than yourself, make an appointment with Student Legal Assistance to find out how to deal with the credit bureaus.
Links
Federal Trade Commission Official Website
This site has useful information on consumer protection.
Charges On Your Phone Bill
This FCC site provides information about the various charges and items on monthly phone bills.
"Do Not Call" List
 
Arizona Consumer Fraud Act (A.R.S. § 44-1521)
 
US Fair Credit Billing Act (15 USC 1666)
full text of US Fair Credit Billing Act (15 USC 1666)
US Fair Debt Collections Practices Act (15 U.S.C. 1601)
Arizona Secretary of State Official Website
 
This site contains information regarding telemarketing laws, commercial codes, administrative regulations, and other public information.
Arizona Attorney General's Official Website
This site has information on consumer fraud, how to file consumer complaints, and many helpful consumer tips.
Arizona Banking Department's Official Website
This site provides consumer information on the complaint process, a list of all agencies
Resources
Consumer Credit Counseling Services
Debt management assistance phone numbers:
  • Tempe: 480-968-2277
  • Phoenix: 602-246-2227
  • Toll Free: 1-800-338-3328

Last updated: May 19, 2008 by Memorial Union WebTeam