Carreon & Associates Logo
credit repair and debt settlements

Home> Credit Library


Bookmark and Share



POWERFUL CREDIT ACTS: Protection for Consumer Credit Issues

Consumers have rights under many different rules but probably one of the most powerful rights you have is the Consumer Credit Protection Act. In your war on credit errors and debt dealings you have in your hands the most powerful laws! When used, you can remedy almost any credit and debt problem because these laws give you so many reasons to question the validity of a debt and more. Under these statutes, you can find mistakes in credit reporting or debt practices practically anywhere. With all the laws and the mini statutes entangled within, it makes it very difficult for creditors/collectors to be 100% accurate and fair, but not for you to make sure they do.

Many consumers have errors and have no idea what rights they have to ensure that those errors are corrected. These laws do little good if you don't use them. If you have 1/2 hour a day then you have time to read these Acts and put them to good use. Once you do, you will start to see the many areas that are afforded to you to question your debt's accuracy.  If all is said and done, your debts are 100% accurate (rare) then you move on to negotiations to settle the debts in exchange for a better rating. Now doesn't that make sense more than "Amazing free credit repair secrets!"? Don't fall for that and be scammed. Below are some of these wonderful laws written for you- the consumer. Below is all you need to question debts, repair your credit and become your own legal eagle.

The Consumer Credit Protection Act, Pub.L. 90-321, 82 Stat. 146, enacted in 1968 is composed of several titles relating to consumer credit, mainly title I, the Truth in Lending Act. The Act, also known as TILA is in place to make sure consumers are informed of their rights relating to credit transactions. TILA ensures that creditors disclose the terms of any credit transaction you enter in to. This can be very useful in understanding what you've agreed to & what the creditor can legally do to enforce it. You should review TILA when dealing with debts and collection issues as well as truth in lending information. You can read the Act here.

Using State or Federal
Many times people often get confused on which law they should apply to an issue. The best rule of thumb is to understand the Supremacy Clause. Based on its foundation is protection. If one law provides more protection to the consumer then it wins. For example, if a law in NY says an item is collectible for 5 years yet the federal statute (FDCPA) says 7, then state would win because it offers you more protection. Same goes with credit reports. If the FCRA says an item can be reported for 7 years from date charged off but your state consumer law says less, then it applies. This is very important in understanding how you are protected. The average person would never even realize this so its good to know when dealing with the credit bureaus and collection agencies.

Who to contact for complaints
If you've had no luck dealing with a creditor, collector or credit bureau over a problem then you should know who you can reach out to for help. Bill collectors have to follow the FDCPA - Fair Debt Collection Practices Act. This law makes sure that you are not treated unfairly or harassed. It also covers all the requirements of the collection agency relating to their business practices. If you've been harassed or had no luck resolving an issue with the collection agency then you can complain to your State Attorneys General. You can also contact the ACA, American Collector's Association and file a complaint. They offer a code of conduct that collection agencies should adhere to. The ACA has a consumer website that you can file a complaint on about an agency. You can find a list of the Attorney Generals here.

Credit Bureaus are closely monitored by the FTC - Federal Trade Commission. If you have no luck dealing with a credit bureau to resolve an issue you can contact the FTC (FTC.Gov) as well as your Attorney General.

Credit repair companies have regulations they must follow too. As the credit repair business exploded onto the web over 10 years ago, more and more people became victims. Many fly by night companies took advantage of people and they lost millions. Most of them at the time, didn't realize that credit repair companies had to follow the law and provide basic rights including the right to cancel the contract and not be charged up front. The law for protection is the CROA - Credit repair organization act.

If you've been a victim of credit abuse you must focus on repairing the damage. One of the most rewarding steps you can take is to empower yourself and take action. There are lots of resources available today to help you help yourself. Be aware, be knowledgeable and above all, be persistent.

More Credit & Collection Resources
FTC Consumer Resources

Collection Laws by State
Identity Theft Resource Center
National Association of Attorney Generals
Fair Credit Reporting Act
Cease & Desist Letters
Avoiding Debt Collectors
Federal Citizen Information Center
American Bankruptcy Institute
Visit our blog for more articles
Debt Glossary of Terms
When a bill collector crosses the line

 

Stay Connected To Us Socially!
Follow CarreonandAssociates twitter CarreonandAssociates Facebook Page GooglePlus CarreonandAssociates

Follow our Blog for credit repair tips!

-More Credit Services To Help You-



Free Credit Report Offer
About us | Contact us | Privacy |Please read your rights as a consumer | FTC.GOV | Terms/Disclaimer | BBB | Members Log In
Copyright Carreon & Associates 1995-2012©. Nothing on this site constitutes legal advice. We are not a law firm. We do not repair your credit for you. This is a self help educational program only. By visiting this website, you agree to our terms.
Credit Repair - Credit Reports - Debt Settlements - Consumer Credit Education Since 1995