Credit Rights and Responsibilities CHAPTER 10 part 10.4 Credit Rights and Responsibilities

Truth-in-Lending Law Must be told cost of credit in writing before signing agreement This includes APR and total finance charges Protects against unauthorized use of credit cards Limits liability to $50

Equal Credit Opportunity Act Prohibits denial of credit based on age, race, sex, or marital status If denied credit, must be given written statement for reasons of rejection

Fair Credit Billing Act Requires prompt correction of billing mistakes Must notify creditor within 60 days of statement generation Do not have to pay amount being disputed Complaint must be acknowledged by creditor within 30 days No finance charges paid on error Also allows you to withhold payment for defective merchandise or services.

Fair Credit Reporting Act Says consumers have a right to know what information about them is being sent to potential creditors, employers and insurers If credit denied, must be given contact information of credit bureau the information came from Requires all bankruptcy information 10 years or older be deleted from records All other adverse information is required to be deleted after 7 years

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.

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 9pm contact you by mail, phone, fax or even telegram Collectors may NOT: call you at work if you tell them not to do so contact you at all hours of the day and night Fair Dept Collections Act

YOUR RESPONSIBILITIES know how much debt you can handle pay more than the minimum avoid too many credit cards pay cash for smaller purchases keep accurate records YOUR RESPONSIBILITIES

Credit Counseling & bankruptcy Look for non profit Can make suggestions to reduce spending and eliminate credit hardships ALWAYS A LAST RESORT!! Often requires legal assistance Stays on your credit record for up to 10 years.