As stated earlier rules create rule breakers and people were not following the Telemarketing Sale Rule. So the rules have to constantly be updated because people are trying to figure out how to get around the rule. This rule came about because consumers just wanted to be left alone when at home and not be bothered with annoying phone calls from telemarketers while in the middle of eating dinner. They don’t want a credit card company calling trying to extend credit in the middle of the afternoon while their home school child is taking a nap.
Which leads us to The Fair Credit Reporting Act, 1970. The Fair Credit Reporting Act, 1970 was brought into play to help the banks and the consumer. As stated above it controls the collection, use, and redistribution of consumer information (Stroup, about. com). In order to keep the banking system running strong and not putting out bad information on consumer. The act has rules and guidelines for companies that report consumer credit. If the banks have bad information on a consumer and gives the consumer a loan then that can be a problem for the bank or the consumer.
But if all reporting stays with in the guidelines of the act then the chances are the information will be good and the right decision will be made in lending. The problem is the bank will have good information in some cases, but the consumer has another consumers information and uses it for themselves. These are the types of unethical things that people do, which has a snowball effect. Because it hurts the banks, making it harder for them to get money from the Federal Reserve, which in turn tightens up the lending criteria of the banks, thus making it difficult for consumers to get the things they need.
But when you create rules, you create rule breakers. So although the two acts help the FTC govern the different areas that the acts cover. They still have their pros and cons, some which we discussed above, and others that we did not. But my belief is “get rid of some of the rules, get rid of the rule breakers. Resources Govtrack. us, H. R 395 (108th): Do Not Call Implementation Act Jack Stroup, About. com Guide: The Fair Credit Reporting Act of 1970