Know the Federal Laws that Protect You
Fair Credit Reporting Act (FCRA)
The FCRA now restricts this subjective practice and tightly regulates the behavior of credit bureaus. Here are a few provisions of the FCRA to keep in mind.
- You are entitled to copies of your credit report at a reasonable price and each consumer can request one (1) free copy per credit bureau per year.
- There are rules about who can legally access your credit report and for what reasons. There are penalties if creditors violate this permissible purpose.
- The FCRA placed a maximum time limit (in most cases seven (7) years) on how long a negative item can remain on your credit report.
- There are now strict guidelines on how a credit bureau is allowed to handle disputes. Most notable of these is the provision that credit bureaus must verify disputed items through reinvestigation and complete this within thirty (30) days.
Fair And Accurate Credit Transactions Act (FACTA)
An amendment to the FCRA, FACTA entitles you to one (1) free credit report per year from each bureau. It also allows you to dispute inaccuracies with information providers such as credit card companies, collection agencies, and banks, in addition to the credit bureaus.
Fair Debt Collection Practices Act (FDCPA)
This FDCPA puts a leash on debt collectors by regulating the tactics they can employ to collect debt. This means that you have a legal right to go after the people who are going after you. Under the FDCPA:
- Collectors can't contact you between 9 p.m. and 8 a.m. or at your place of employment if you inform them not to.
- They have to inform you of the purpose of their communications (both written and verbal) and are not allowed to misrepresent themselves or their intentions.
- They can't threaten consumers (in any of the creative ways they used in the past).
- You can challenge the validity of any information under your right to debt validation, and the collector is compelled to follow a protocol. If they don't, the debt has to be removed from your credit report!
- If you're being harassed by creditors, this might be the best part: you can request that they cease all communication with you and they have to leave you alone!
Fair Credit Billing Act (FCBA)
Under the FCBA, creditors MUST bill correctly and completely. It addresses, among other issues, unauthorized charges, charges with the wrong date or in the wrong amount, goods or services that weren't delivered as agreed, and a wealth of other common errors that creditors are now legally obligated to avoid.
As you can see, the law is on your side and, as a consumer, you have more rights than ever before when it comes to fair practices regarding debt, debt collection, and the behavior of creditors. Unless you're in the legal field, however, this information can be overwhelming and confusing. |
