Legal Help for Credit Problems

Getting behind on your bills or falling into financial difficulties can cause no end of stress and worry. Whenever you've fallen into debt difficulties and are worried about what to do, you are entitled to certain rights and protections under the law. No two debt situations are identical, so talk to a lawyer or financial adviser if you need assistance with a debt problem or require legal advice.

Credit Reports

If you're having trouble getting approved for a loan and don't know why, one reason may be your credit report. Under the terms of the Fair Credit Reporting Act, or FCRA, all consumers has the right to view what is on their credit reports every year without charge. The Federal Trade Commission has authorized AnnualCreditReport.com to provide consumers with copies of their reports. You can also contact the Federal Trade Commission at 1-877-FTC-HELP for more information.

Debt Collections

Some consumers who fall behind on debt payments may experience calls from debt collectors or other collections agencies. You have specific rights under the terms of the Fair Debt Collections Practices Act when you deal with these collectors. Once part of the law, for example, restricts collectors from calling you before 8 a.m. and after 9 p.m. If the collectors violate this law, you can report them to the Federal Trade Commission and sue them even if you have not suffered any damages.

Discrimination

The Equal Credit Opportunity Act is a law that prohibits lenders from denying consumers credit based on factors such as sex, race, religion or national origin. This law prevents creditors from using these factors as part of the credit approval process. Typically, this prohibits creditors from, for example, asking about your race on a credit card application. If you suspect you've been denied credit because of illegal discrimination, you can file a complaint with the Federal Trade Commission.

Bankruptcy

The last resort for some consumers who have financial difficulties is bankruptcy. When you file for bankruptcy, you are protected from your creditors. The creditors have to go through the bankruptcy court to try to collect on any claims they have against you. Though filing bankruptcy damages your ability to get new credit, it is an option that can allow you to get out from overwhelming debts.