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

2. 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

3. 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

4. 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.

5. 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

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 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

8. 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

9. 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.