Consumers have certain rights regarding their credit card debts that prevent them from being victimized by credit card companies or collection agencies. In the event that an individual's rights are violated, he has the option to seek recourse against the creditor to rectify the situation.
The Facts
The Fair Credit Reporting Act and The Fair Debt Collection Practices Act were established in 1971 and 1977, respectively, to ensure accurate credit reporting practices for consumers and prevent abusive collection techniques.
Disputes
A consumer has the right to dispute a credit card debt on her credit report with the credit bureau that is reporting the account. Consumers also have the right to request that any credit card debt that has been remanded to a collection agency be proven accurate.
Time Frame
Credit card companies must notify consumers of any changes to the credit card interest rate 45 days before the changes take place. Customers must be then given the option to close the account and pay off their balances at their original interest rate.
Considerations
Consumers may file a formal complaint with both the Federal Trade Commission and their state attorney general's office regarding unethical credit card company business and collection practices.
Effects
If all other methods of redress fail, an individual may file a lawsuit against a creditor for violating the FCRA or FDCPA.
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