Consumer credit accounts include personal loans and credit cards. A number of federal laws govern consumer credit, including but not limited to credit reporting guidelines and billing disputes. Also, federal bankruptcy codes allow financially struggling consumers to liquidate or reduce their debts in extreme circumstances. Some states have additional laws regarding credit, but federal laws apply everywhere in the United States and its territories.
The Fair Credit Billing Act
The Fair Credit Billing Act provides customers and companies a number of rights related to credit card accounts. Customers must keep their lenders apprised of their current addresses and should make payments on time to avoid hefty financial penalties. If someone's card is lost or stolen, he is only liable for the first $50 of unauthorized purchases. Credit card companies must promptly post payments and credits to accounts. They also must investigate any billing disputes the customer initiates due to shoddy or undelivered goods.
The Fair Credit Reporting Act
Credit reports consist of information about a person's address history and bill-paying habits. On-time payments boost credit ratings, while late or missed payments adversely impact credit ratings. The Fair Credit Reporting Act demands that lenders issue only accurate reports concerning consumers to the credit bureaus. It also enables consumers who are victims of identity theft or unfair billing practices to demand investigations. Late or missed payments usually harm credit ratings for seven years from the date of the original delinquency.
The Fair Debt Collection Practices Act
Under the Fair Debt Collection Practices Act, consumer creditors can turn over delinquent accounts to an outside agency. But all debt collectors must behave appropriately or risk being sued. Bill collectors must stop calling if a customer writes a letter requesting that the calls stop. They also cannot call consumers outside of the hours of 8 a.m. to 9 p.m. and may not communicate with consumers by postcard. Customers have the right to demand proof of the debt; if the debt is invalid the agency must cease collection activities.
Bankruptcy Laws
People with financial problems can file for personal bankruptcy. The most common types are debt forgiveness under Chapter 7 and partial debt repayment in Chapter 13, according to the book "How to File for Chapter 7 Bankruptcy." Bankruptcy will only reduce consumer-oriented debts that were honestly incurred; people who lied to get credit or used accounts right before filing bankruptcy can be arrested for bankruptcy fraud. Bankruptcy also will not erase bad credit, nor will it help situations such as child support, alimony and court fines.
0 comments:
Post a Comment