Presentation on theme: "Credit Rights and Responsibilities"— Presentation transcript:
1 Credit Rights and Responsibilities CHAPTER 10 part 10.4Credit Rights and Responsibilities
2 Truth-in-Lending LawMust be told cost of credit in writing before signing agreementThis includes APR and total finance chargesProtects against unauthorized use of credit cardsLimits liability to $50
3 Equal Credit Opportunity Act Prohibits denial of credit based on age, race, sex, or marital statusIf denied credit, must be given written statement for reasons of rejection
4 Fair Credit Billing Act Requires prompt correction of billing mistakesMust notify creditor within 60 days of statement generationDo not have to pay amount being disputedComplaint must be acknowledged by creditor within 30 daysNo finance charges paid on errorAlso allows you to withhold payment for defective merchandise or services.
5 Fair Credit Reporting Act Says consumers have a right to know what information about them is being sent to potential creditors, employers and insurersIf credit denied, must be given contact information of credit bureau the information came fromRequires all bankruptcy information 10 years or older be deleted from recordsAll other adverse information is required to be deleted after 7 years
6 Consumer Credit Reporting Reform Act Puts burden on credit agency to provide accurate information, meaning THEY have to prove disputed data is accurate.Also means you can sue them if they verify incorrect info.
7 Fair Dept Collections Act Prevents threats or inappropriate actions in the attempt to recover money. It does NOT take away the fact that you owe the money!Collectors may:contact you between 8am and 9pmcontact you by mail, phone, fax or even telegramCollectors may NOT:call you at work if you tell them not to do socontact you at all hours of the day and nightFair Dept Collections Act
8 YOUR RESPONSIBILITIES know how much debt you can handlepay more than the minimumavoid too many credit cardspay cash for smaller purchaseskeep accurate recordsYOUR RESPONSIBILITIES
9 Credit Counseling & bankruptcy Look for non profitCan make suggestions to reduce spending and eliminate credit hardshipsALWAYS A LAST RESORT!!Often requires legal assistanceStays on your credit record for up to 10 years.