Consumer debt consists of personal debts for goods purchased for personal or household consumption—as opposed to debts incurred for the operation of a business. Common examples of consumer debt include (1) credit card debt; (2) student loans; (3) home mortgage loans; (4) car or auto loans; (5) payday loans; (6) medical debts; and (7) unpaid utility and telephone bills.
In Wisconsin, consumer debt is regulated by both state statutes and federal law. Credit card debt, student loans, home mortgages, auto loans, payday loans, medical debts, and unpaid utility and telephone bills are all considered consumer debts when they are for personal or household use. Wisconsin's consumer protection laws are designed to prevent unfair and deceptive practices in consumer transactions. For example, the Wisconsin Consumer Act (Wis. Stat. §§ 421-427) provides specific regulations on consumer credit transactions and debt collection practices. Additionally, the federal Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive debt collection practices and applies to the collection of these types of debts. Creditors and debt collectors must adhere to these laws when attempting to collect debts, and consumers have the right to dispute inaccuracies and seek damages for violations. It's important for consumers to understand their rights and obligations under these laws, and they may seek the advice of an attorney if they face issues with consumer debt.