| |
| |
|
|
Credit Information |
|
Your Consumer Rights
If you have ever fallen behind on your debts you already know that dealing with your creditors can be a hassle. Sometimes it can be downright humiliating. It doesn't have to be that way. With millions of people experiencing financial problems it is absolutely necessary for everyone to know and understand their rights as a consumer. Federal law requires that you receive fair and equal treatment from businesses issuing credit. This law applies when they evaluate your applications for credit, insurance, employment, and even leases. The one area where I receive the most complaints are from individuals that are being harassed by debt collectors. These complaints range from debt collectors contacting their work and family members to being called names. All of these are a direct violation of the Fair Debt Collection Practices Act (FDCPA). This article spells out exactly what your rights are as a consumer. I have copied some areas of this article directly from the Federal Trade Commission's web site to ensure that the information is explained exactly as the law applies. These areas are identified. The FDCPA lists the following guidelines that must be followed by all debt collectors: (Copied from the Federal Trade Commission web site) ---------------------------------------------------------------- ~~Debt collectors may contact you only between 8 a.m. and 9 p.m. ~~Debt collectors may not contact you at work if they know your employer disapproves. ~~Debt collectors may not harass, oppress, or abuse you. ~~Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime. ~~Debt collectors must identify themselves to you on the phone. ~~Debt collectors must stop contacting you if you ask them to in writing. It also prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts. ---------------------------------------------------------------- It is very important to keep a record of any contact you make with your creditors especially when there is a dispute or misunderstanding regarding your account. You should list the name and address of the company, date and time of the call, the name of the person you spoke with and the content of the call. I have developed a form that can be used for this purpose. You can find it at http://www.homemoneyhelp.com/ccrs.html Another important aspect of your consumer rights is Credit Reporting. Derogatory information in your Credit Report can have serious consequences. It is ultimately your responsibility to ensure that the information in your credit report is accurate and up to date. There are numerous companies that offer "Free Credit Reports", however, you are obligated to sign up for their "Debt Monitoring Service" which usually costs about $80. You will receive a free credit report and if you cancel your monitoring service within 30 days it will cost you nothing. Your best bet is to order your credit report directly from a Credit Reporting Agency. It will only cost you about $9. Below is a list of the three main companies: Equifax PO Box 740241 Atlanta, GA 03074-0241 (800) 685-1111 Experian PO Box 2104 Allen, TX 75013-2104 (888) EXPERIAN (888-397-3742) Trans Union PO Box 1000 Chester, PA 19022 (800) 916-8800 I would advise you to visit the below link to find out exactly how to obtain your credit report: http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm Having knowledge of your rights under the Fair Credit Reporting Act (FCRA)can save you a lot of time and trouble when you apply for credit. The following explains these rights. (Copied from the Federal Trade Commission web site) ---------------------------------------------------------------- Your Credit Report Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by "consumer reporting agencies" (CRAs). One type of CRA is commonly known as a credit bureau. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy. The Fair Credit Reporting Act (FCRA) is designed to help ensure that CRAs furnish correct and complete information to businesses to use when evaluating your application. Your rights under the Fair Credit Reporting Act: ~~You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request. ~~You have the right to know the name of anyone who received your credit report in the last ~~year for most purposes or in the last two years for employment purposes. ~~Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA. ~~You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice. ~~If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute. ~~You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction. ---------------------------------------------------------------- If you believe that your rights have been violated under one of these laws you can file a complaint with the Federal Trade Commission online at: https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01 While these laws won't eliminate your obligation to pay your just debts they can prevent debt collectors and others from taking advantage of you. Terry Rigg is the author of Living Within Your Means - The Easy Way http://www.homemoneyhelp.com/ebookadpage.html and editor of The FREE Budget Stretcher Newsletter and Budget Stretcher web site http://www.homemoneyhelp.com. He has 25 years of experience counseling individuals and families concerning their personal finances.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Your Guide On Choosing a Credit Card To Suit You Reach into your wallet or purse, pull out a card, swipe, and you're done. It is very easy to use a credit card. Restore Your Credit Rating And Reduce Your Debts Your credit rating affects many areas of your life. Opening new credit accounts, buying a home or car, getting a new job, and receiving discounts on insurance rates are just a few of the things that are impacted by your credit score. Credit Traps Snag Consumers Nearly 20 years ago I worked for a small consumer advocacy organization in Washington, DC. Each week we received sacks full of mail from consumers across the country requesting our list of credit cards with low interest rates and no annual fees. Always Avoid Payment Holidays Once you've been paying off a credit card for a while, you might be offered a 'payment holiday'. You'll get a letter, saying that since the company knows it's difficult for some families around Christmas (or whatever other excuse they think up), they're offering you a month off from paying, as a 'special present'. What is a Credit Report? Ever wondered what is a credit report? If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. 5 Steps You Can Take to Get Paid! There are always some companies that have past due invoices and can't seem to get them paid. They might be quietly waiting to get paid not wanting to contact the client for fear of appearing "desperate". Tips For Getting Your First Credit Card Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and all of us stumble into the same types of difficulties when it comes to finding an issuer and managing the credit card. Most banks ask for a prior type of credit history that most of the time lacks and for some type of warranty that we will be good payers. Credit Cards: Pros and Cons Sure, there are a lot of problems with credit cards, but there are a lot of good things attached to them as well. For instance, if you have a small business, fleet credit cards can keep your books in order when you issue them to drivers of company vehicles for gas and automobile repairs. Credit Cards: How To Use Them Credit cards can be a very quick way of getting into even more debt if you do not know how to use them properly. UK debt is now at an all time high and, excluding mortgages, Credit Cards are one of the main contributors. Credit Problems? Heres How to Manage Your Creditors If you find that creditors are calling you almost daily or that one of more of your bills has been turned over to a collection agency, you should know how to manage your debts.First, prioritize then or rank them in terms of the ones that can give you the most trouble the soonest. The Best Strategy To Erase Credit Card Debt Credit card debt is a growing sickness in the United States and Europe. It is very important to eliminate debt and take control of your financial health. Credit Cards Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the fine print. What Is A FICO Score? A credit score is most commonly known as a FICO score. FICO stands for Fair Isaacs Corporation. Why Americans Find Predatory Lending Offensive "Menis - the author translates as "indignant rage" - It is the kind of rage arising from social betrayal that impairs a person's dignity through violation of "what's right." (p21), Achilles In Viet Nam - Combat Trauma and the Undoing of Character, Jonathan Shay, M. Bad Debt Recovery Bad Debt IdentificationIdentifying bad debt is not as easy as it sounds. But the earlier it is done, the better are chances of recovering it. Credit Card Security Advice Which of the following is the biggest threat to your credit card security?a) Shopping online with a credit card b) Shopping in a real store with your credit card c) Ordering something over the phone with your credit cardThe answer may surprise you. It's b - shopping in a real store with a credit card. Small Business Credit Cards So what do you look for when applying for a credit card for your small business? One thing is for sure, wasting money isn't an option because it can make or break your business. Things to look for are low interest rates and good customer service. Credit Report - Look Out for Your Debit Report, Too Most consumers are aware that there are companies that keep track of their personal financial transactions - installment loans, mortgages, credit card accounts, bankruptcies and judgements. These items are assembled by the three main credit bureaus into a credit report, which is available upon request by lenders, employers and anyone else with whom a consumer might do business. Beware the Shopping Mall Monster Like me, you've probably been offered a fair old number of these by now.. Taking Control of Your Credit History Your credit history is important; in fact, in this day and age, only family and your time are more important than your credit history! The first time you established a payment commitment over a period of time for a purchase, you began your history of credit, and the credit bureau created your account. Payments such as the electric company, a rental agreement, a cell phone, a car payment or a low-rate credit card which you also have a responsibility to repay are not reported to the credit bureaus as a part of your credit history.
|
|||||||||||||||||||
