Fair Credit Act Laws

Consumers who have behaved responsibly but hit a financial snag and those who overspent and wound up in money trouble alike are protected in the United States by the Fair Credit Reporting Act. The FCRA does not relieve debtors of their obligations, but it does limit some of the more nefarious behaviors of the creditors that were common prior to its passage.

Personal Information

Under the FCRA laws, you do not have to give any additional personal information to creditors when they contact you by phone. Some creditors will attempt to get more information from you, such as the name of your boss or family members you have in town, what you earn at your job or what your job is, for that matter. You are protected from these intrusions by the FCRA.

Harassment

The FCRA ended some of the more egregious practices of debt collectors that used to be the norm prior to its passage. Collectors can no longer call you before 8 a.m. or after 9 p.m. local time. They are forbidden from using "foul" language or threatening. They must also inform you of who they are and what their purpose is. If you contact the collection agent in writing and tell them you would no longer like to receive calls, they must abide by that. However, using that course of action will likely result in the creditor pursuing all legal means against you to collect the debt.

Credit Reports

You are entitled to a free copy of your credit report from each of the three reporting agencies --- Trans Union, Equifax and Experian --- once per year. Additionally, the fair credit laws require these agencies to provide you with a free copy of your report if you are denied credit based on their information. Your request for the free report must be made within 60 days of the denial. You will receive a letter informing you of your right to the report if you are denied.

Equal Opportunity

You may not be denied credit based on race, national origin, religion or marital status. When you are denied credit, the agency must inform you in writing as to the reason. If you believe you are the victim of discrimination, contact the FTC.