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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
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