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Your Legal Rights as a Credit Card Holder

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The federal government has set up a number of laws that are designed to protect the rights of credit card holders. Unfortunately, though, many consumers are unaware of these laws or their rights under the laws.

Here is a list of the laws through which the federal government protects credit card holders and consumers:

• The Fair Credit Billing Act – The Fair Credit Billing Act, which protects most cardholders, is a law that protects you from inaccurate or unauthorized charges on your credit card statement. Through the Fair Credit Billing Act, most consumers are responsible for just the first $50 of unauthorized charges. In addition, this Act protects consumers from paying for merchandise that never arrived; for any goods that were not what was promised; and double charges for goods or services.
• The Fair Credit Reporting Act – The Fair Credit Reporting Act, which was amended by the Fair and Accurate Credit Transactions Act of 2003, protects you from inaccurate or incorrect information found on your credit report. Within this Act, consumers have the right to dispute inaccuracies, which then have to be investigated by the appropriate credit reporting bureau within 30 days. Any information that cannot be verified during this time must be removed from your credit report.  This Act also allows you order a free copy of your credit report if you have been denied credit.  Finally, this Act also prevents just anyone from looking at your credit report; only those with a need (a creditor, insurer or landlord, for example) can gain access to your credit report.
• Truth in Lending Act – The Truth in Lending Act prohibits creditors from offering credit to consumers unless all terms, rates and conditions are clearly outlined.
• The Credit CARD Act – One of the newest forms of federal legislation regarding credit cards, the CARD Act is a far-reaching piece of legislation, although some of the highlights include: creditors cannot raise your interest rate without at least 45 days’ notice; double-cycle billing is prohibited; and your creditor cannot raise your interest rate on existing balances if you continue to meet the minimum payment and due date requirements set forth by the creditor.

How to Fight Inaccurate Information on Your Credit Report

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Your credit report is like an outline of your credit life and history. A good credit score can afford you the ability to rent an apartment, lease a car and purchase a home. A poor credit score, on the other hand, can limit your opportunities and leave you with loans bearing high interest rates.

Because of the importance of a strong credit score, it is vital that you order a copy of your credit report, from all three credit reporting agencies, at least once a year so you can thoroughly review your credit report. If you find any inaccuracies or omissions, it is important to immediately contact the appropriate credit reporting agency.

Here’s how to do it:

• As soon as you spot an error, contact the appropriate credit reporting agency and submit a dispute. Provide the credit bureau with an explanation, in writing, of what you believe is inaccurate information. Any information you can provide the bureau with, such as credit card statements, to support your claim, will be helpful. Don’t send originals, though; make copies and keep the originals. Send your letter through certified mail and ask for a return receipt. Before you send any information, make copies of everything, including the letter, for your records.
• Under the Fair Credit Reporting Act, the credit bureau must investigate your dispute within 30 days. If they are unable to verify the information contained in the report, they must remove it from your credit report.
• Once the investigation has been completed, the credit bureau in question must then provide you, in writing, with the results of their investigation, along with another copy of your credit report showing the updated information.
• If you request it, the credit bureau must also provide an updated credit report to anyone who received your credit report in the last, six months. In addition, if an employer requested a copy of your credit report in the last, two years, you can request that the bureau send them a copy, as well.
• If you are unable to resolve a dispute with the appropriate credit bureau, you can still request that the bureau include the copy of the dispute in all future credit reports.

Useful Information about the Fair Credit Reporting Act

Credit Repair Introduction

What you don’t know about the Fair Credit Reporting Act could cost you.

The Fair Credit Reporting Act (FCRA), which is enforced by the Federal Trade Commission, is a federal act designed to ensure that consumers’ privacy is protected and that the credit reporting agencies maintain accuracy and abide by certain responsibilities.

Perhaps one of the most important features about the FCRA is that consumers are entitled to a copy of their credit report from all three, national credit reporting agencies – Equifax, TransUnion and Experian – once a year.

There are also other instances in which you may be entitled to a free credit report:

• - If you have been denied for credit, insurance or employment (you must ask for a copy of your credit report within 60 days of being denied)
• - If you are unemployed and plan to begin looking for a job within the next 60 days
• - If you are on welfare
• - If you have been a victim of fraud or identity theft

Under the FCRA, you also have rights regarding inaccuracies which appear on your credit report. The credit reporting agency in which the inaccuracy appears, as well as the creditor who provided the information, have an obligation and a responsibility to investigate and correct the inaccuracy within 30 days.

Simply inform the credit reporting agency in writing. The credit reporting agency must then forward the information to the creditor, who must then investigate and review the information and report back to the credit reporting agency.

Upon resolution of the inaccuracy, the credit reporting agency must provide you with the written results of the investigation, as well as a new copy of your credit report (if the dispute results in a change on your credit report).

Finally, the FCRA recognizes that the only individuals who can obtain a copy of your credit report are those individuals with legitimate business needs. In addition, your employer may only access your credit report upon your approval.

If you have experienced violations of the FCRA, you should report it directly to the Federal Trade Commission at:

Consumer Response Center — FCRA
Federal Trade Commission
Washington, D.C. 20580.