Consumer Credit Protection: Your Rights & How To Use Them

For legal purposes, the Federal Trade Commission (FTC) clearly outlines what consumer credit protection means. Every lender that offers a credit account or line of credit must adhere to federal laws, and you should know your rights as a consumer.

Your Consumer Credit Protection Rights

Most people know that they have the right to receive a copy of their credit report, but your rights don't stop there. All information contained in your report at the time of request must be revealed. You have the right to know about anyone who has pulled your report within the last year (two years for employment related inquiries).

All consumers can challenge the accuracy or completeness of their credit report, and can file a dispute. Any inaccurate information is required to be removed. If you dispute is unresolved, you can issue a statement (for a fee) that will be submitted with your report.

If your credit, insurance or job application is denied as a result of information contained in your report, you have a right to know which credit reporting agency provided the information. You have 60 days to request a free copy of the report. Any time that you are denied credit, you are entitled to a reason why. Race, sex, marital status, religion, age, national origin, or the receipt of public assistance are illegal reasons to deny someone credit, due to the Equal Credit Opportunity Act.

You can also request a report if it have become inaccurate due to identity theft or other fraud.

How to Protect Your Rights

Check you credit report regularly. Contact the credit bureau that supplied the report about any discrepancies immediately.

Always review your credit billing statements for mathematical errors or other mistakes. Notify the company right away if you notice anything wrong.

If you wish to dispute items on a credit report, bill or credit denial, write to the appropriate company and send your letter “return receipt requested.”

Be sure to keep all of your original documents available, and send copies when filing a dispute. Make sure that your name, account number and specific problem are all clearly stated. It may take time, so be patient, but do follow up on your dispute.

Be wary of credit repair services that promise simple and fast solutions to all of your credit problems. Credit repair takes time, and there are no instant solutions.

Always communicate with your lenders if you are having problems with payment. It is better to contact them before your account is delinquent and turned over to debt collectors.

Do not allow debt collectors to harass you. You can stop them from calling you if you send them a written notice requesting that they don't call. They should not call you at work if you employer doesn't appreciate it, and they should not call before 8 in the morning or after 9 at night. Debt collectors must treat you fairly and should not lie to your or imply that you have broken the law.

Consumer Credit Protection: Your Rights & How To Use Them

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