Establishing credit is a good thing, maintaining good credit is even better. When applying for a loan, credit card or any other form of credit, businesses inspect your credit file to determine if you will be offered a line of credit. To ensure all consumers are given an equal and fair opportunity at being awarded credit, the Federal Trade Commission (FTC) enforces credit laws for you.
Credit Report
Businesses buy your credit file from credit reporting agencies for the purpose of evaluating your credit. Your bankruptcy filings, liens and your bill payment record is some of the information listed on your credit report. The Fair Credit Reporting Act (FCRA) gives a consumer the right to request a copy of his credit report at any time from all three credit reporting agencies (Equifax, Experian and TransUnion). If you were denied credit, you have the right to know the agency the creditor contacted for your credit report.
Discrimination
Creditors may not refuse you credit based on marital status, gender, race, national origin, religion or receipt of public assistance under the Equal Credit Opportunity Act (ECOA). A creditor may ask you for information listed above (with the exception to religion) in some cases, but the info may not be used to discriminate against you when pertaining to extending you credit. Reliable public assistance may be considered the same as any other type of income. To determine if discrimination occurred, you have the legal right to know why you have been denied credit.
Debt Collection
Sometimes a consumer is unable to pay his debt, and it ends up in collection. A creditor has the right to collect the debt, or sell it to a debt collecting agency. Creditors and collectors have guidelines set under the Fair Debt Collection Practices Act (FDCPA) that must be followed when collecting the debt. Collectors may only call a debtor between the hours of 8 a.m. and 9 p.m. in his time zone. Collectors may contact you at work unless you notify the collector that your employer does not allow personal calls. At no time is a collector to lie about who he is, or harass, threaten or abuse you.
Identity Theft
Monitor your credit regularly. Make sure that everything listed on your credit file is correct, and that no one has opened a lined of credit in your name without your consent. A creditor typically reports your debts for up to seven years or until the statue of limitations run out (the longer of the two), and 10 years for any bankruptcy information. You have the right to dispute any fraudulent charges with the credit reporting agency and the creditor. An investigation must be made to determine if the debt actually belongs to you.
Maintaining Credit
Although credit laws are established to protect your right to get, use and maintain credit, the laws do not guarantee everyone will be awarded lines of credit. Paying accounts on time and not overextending yourself is helpful. It is a good idea to contact your creditors to discuss a repayment plan on a debt to prevent damage to your credit file and score.
0 comments:
Post a Comment