There are seven consumer credit laws you should be aware when dealing with your credit.
1. The Truth in Lending Act
The customer had to be told the true cost of borrowing, so they could figure out exactly what the charges would be. You must be informed, in writing of the finance charge and the APR before you sign any contract. Also, you need to be informed of the method they are going to use to calculate the balance on which you pay a finance charge.
This Act gives you a chance to change your mind when you use your home as security in a transaction. The first 3 day right of rescission gives you 3 business days to cancel the transaction and the creditor must give you this notice prior to the transaction.
2. The Fair Credit Reporting Act
Check other bonus material for your rights. Basically this act regulates the activities of credit reporting agencies or credit bureaus and gives the FTC responsibility for enforcement.
3. The Fair Credit Billing Act
This law establishes procedures requiring creditors to promptly correct billing errors, and allows the consumer to withhold payment on damage goods, and makes creditors promptly credit your payments.
4. The Fair Debt Collection Practices Act
This act establishes the guidelines for collectors to follow. They may not contact you at unreasonable times or places. Unless agree, they must not contact you before 8 am or after 9 pm, nor at your place of employment. You must receive a written explanation of your supposed debt and what to do if you feel you do not owe the money.
5. The Equal Credit Opportunity Act
This Law prohibits discrimination in the granting of credit of any form due to sex, marital status, race, religion or age.
6. The Electronic Funds Transfer Act
This act gives protection in all stages of modern banking techniques such ATM, telephone transfers, computer transactions, etc. Its limits for the first time consumers’ liability for lost or unauthorized use of debit or electronic cards are similar to those in place for credit cards.
Notifying the bank within 2 days, your maximum liability is $50. If you miss that timeframe, you could be liable up to $500 in charges. After 60 days, you’ll be liable for the entire amount.
7. The Credit Repair Organization Act
This law states that the credit repair organizations could not make a statement that was misleading. They were prohibited from advising their clients to make a misleading or untrue statement to a credit bureau.
This law gives the consumer 3 day right of cancellation, which needs to be on the contract and must direct you on how to cancel. The document must detail the services that will be provided, guarantees, time frame for service and cost for the consumer.
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Carmen Shearer is the President and CEO of S&S Financial Solutions. She has worked in the finance arena for over 10 years and holds two engineering degrees and an MBA from a branch of Harvard Business School. S&S Financial Solutions offers you credit repair tools, debt elimintation programs and personal financial information with a 90 days guarantee. For more credit related information go to: http://www.excellentcreditnow.com or for how to eliminate your debt go to http://www.excellentcreditnow.com/NoMoreDebt.com
Carmen Shearer