Consumer Protection for Millennials

When young people get behind on credit card payments and may be facing the possibility of consumer bankruptcy, are they more susceptible to scams that promise to help with debt burdens? According to a recent article from Consumer Reports, the Better Business Bureau recently conducted a study in which it ultimately identified Millennials—the current generation of younger people generally in their 20s—as being “most susceptible to scams.” For many Americans, the results of this study are surprising given that Millennials tend to be more educated and “consider themselves to be savvy consumers.”
What else do you need to know about the study? How can Chicago-area residents help to avoid “optimism bias” when facing consumer scams and debt practices?
Learning More About “Optimism Bias” Among Millennial Consumers
As the article reports, younger Americans likely are more susceptible to consumer scams because of something called “optimism bias.” What is optimism bias? The Better Business Bureau study describes it as a sense of feeling invulnerable when it comes to scams, which results in many Millennials failing to take proper consumer protections. Yet the optimism bias results in more harmful behaviors than simply failing to take protections. Indeed, it also “leads to a tendency to ignore warnings and other advice that could prevent them from being targets of scams.”
The study was called “Cracking the Invulnerability Illusion,” and it sought to determine why so many young people, like many elderly Americans, have recently been the targets of consumer scams. While scams have severe economic costs among the elderly population—last year alone, Consumer Reports cited losses of $3 billion due to financial fraud—Millennials seem to be hit even harder proportionally.
Young Consumers More Likely Than Seniors to Be Scammed
When we say that younger Americans are more likely than the elderly to be scammed, what kinds of number are we talking about? The study surveyed more than 2,000 people and determined that “those between the ages of 18 and 24 were more than three times as likely as seniors to not recognize a scam.” Yet another figure from the study is perhaps even more surprising: the Better Business Bureau determined that, while some of the youngest adults are the most likely to fail to identify a scam, “those aged 25 to 34 were most likely to report losing money to a scam.”  
What can younger adults do to avoid being scammed? It is important to recognize vulnerability and to learn more about scams that may target young adults in debt. If you believe you have been the victim of a scam or a fraudulent debt collection practice, you should file a complaint.
Contact an Oak Park Bankruptcy Lawyer
If you are young and struggling with debt, it is important to recognize that bankruptcy protections are not limited to those in a certain age group. In some situations, personal bankruptcy may be able to help Millennials who have substantial debt to get a fresh start. To learn more, you should discuss your options with an experienced consumer protection lawyer in Oak Park. Contact the Emerson Law Firm today to speak with a dedicated advocate about your case.
See Related Blog Posts:

Comments

Post a Comment

Popular posts from this blog

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more