1. Protecting Your Credit
Personal Finance
Protecting Your Credit

2. Co-Signing
You agree to be responsible for loan payments if the other party fails to make them
They can collect from you instead of the original debtor

3. Truth in Lending & Consumer Leasing Acts
If creditors fail to disclose information as required or gives inaccurate information, you can sue for any money loss you suffer
Can also sue a creditor that doesn’t follow rules regarding credit cards

4. Equal Credit Opportunity Act (ECOA)
If you can prove that a creditor discriminated against you for any reason prohibited by the ECOA, you can sue for actual damages plus punitive damages – payment to punish the creditor for violating the law – up to $10,000

5. Fair Credit Billing Act
A creditor that fails to follow the rules that apply to correcting any billing errors will automatically give up the amount owed on the item in question and any finance charges on it, up to a combined total of $50
You may also sue for actual damages plus twice the amount of any finance charges

6. Fair Credit Reporting Act
May sue any credit bureau or creditor that violates the rules regarding access to your credit records or that fails to correct errors in your credit file
You’re entitled to actual damages plus any punitive damages the court allows

7. Consumer Credit Reporting Reform Act
Places the burden of proof for accurate credit information on the credit bureau rather than on you
Creditors must prove that disputed information is accurate

8. Are You Experiencing Two or More of These Warning Signs?
Signs of Debt Problems
Are You Experiencing Two or More of These Warning Signs?
You make only the minimum monthly payment
You struggle to make the monthly payment
The total balance increases every month
You miss payments or you are often late
You use savings to pay for necessities
You receive second or third late payment due notices
You borrow money to pay off old debts
You exceed credit limits
You have been denied credit because of bad credit

9. Managing Your Debt Fair Debt Collection Practices:
Debt Collectors are allowed to collect debts for creditors

10. Financial Counseling Consumer Credit Counseling Service:
Supervise Debt Repayment Plans
Aide families with serious debts
Help people prevent future problems/issues
Set up budgets, etc…

11. Bankruptcy
Some or all of the assets of a debtor are distributed among creditors
May include a plan to pay back creditors
Severely damages your credit

12. Bankruptcy Act, 1978 Chapter 7: Many but not all debts are forgiven
Most assets are sold to pay back creditors
Protected Assets: net of home, vehicle household appliances, etc…
Chapter 13: Propose a plan to eliminate debts over time
Keep most of your property
5 year plan, pay all debt

13. Complete
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#1-3; #6
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