Thursday, September 29, 2011

When a contract isn't a contract ---

Just because a consumer signs on the dotted line doesn't mean you have a valid contract. Consumers are entitled to protection and businesses are supposed to do their homework when drafting a contract. Its not a "legal document" if it's against the law.

There's this little group in Washington called the Federal Trade Commission and they protect us from, well, guys like us.

It disturbed me to find out that lenders still write contracts with illegal clauses like confessions of judgment, wage assignment and pyramiding late payments.

The wage assignment, or "voluntary wage garnishment" issue is in the sights of the FTC now. See their complaint against Big Sky Payday Loans, news release dated 9/12.

Here's a link to the pamphlet the FTC put out. Yes, they wrote a pamphlet for those of us too ADD to read the actual law. Are we following the rules?
http://business.ftc.gov/documents/bus04-complying-credit-practices-rule

The days of the wild wild west are over. Consumers are on to us. Time to take the upper hand and obeying the law is the minimum standard.

See more at my website.
http://business.ftc.gov/documents/bus04-complying-credit-practices-rulehttp://business.ftc.gov/documents/bus04-complying-credit-practices-rule

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