Learn three statutes that every consumer should be aware of in order to protect your consumer credit reputation
1
Fair Debt Collection Practices Act
The curious thing is that most consumers are not aware of the contents of these three statutes and how all three offer some protections to consumers in their financial transactions. All of us have taken out loans, bought something on credit. In addition, in those efforts, all of us attempt to obtain credit at the most favorable terms available. Unfortunately, for a variety of reasons (like a bad economy) we default on loans, are unable to make timely payments on credit card payments, or unable to make payments on medical bills. Moreover, some of us encounter problems on our credit reports which are mis-applied or simply are not of our own doing. These three statutes under discussion provide a measure of relief and protection to consumers.
The Fair Debt Collection Practices Act, is a statute which generally applies to personal, family, and household debts. This might include money owed for the purchase of a car, for personal credit card payments, or for medical treatment bills.
2
Fair Credit Reporting Act
Given these errors, it is more important then ever, that consumers obtain their credit reports on a regular basis. Later in this article, I will show you how and when to obtain your credit report at no cost to you.
Many people want to know the procedure for having late items, collections, charge-offs, and generally all things negative removed from the credit reports. The Fair Credit Reporting Act provides that mechanism. If you feel that something is in error on your credit report, this statute allows the consumer (or his representative) to write a letter to one of the three credit bureaus, whether it be Equifax, Experian, or Trans Union. If the original creditor does not respond to your inquiry within 30 days of receiving notice of your inquiry, the credit bureau will ordinarily take the side of the consumer, and the negative credit rating will be removed from your credit report. Regardless of whether it was indeed late or derogatory, the negative item will be removed from you
3
Fair and Accurate Credit Transactions Act
The last statute that a consumer should be aware of is the Fair and Accurate Credit Transactions Act (FACTA). Under FACTA, consumers have the right to obtain one free copy of your credit report from each of the three major credit bureaus every 12 months. There are three methods for obtaining your free annual credit reports:
1. Use the central web site at www.annualcreditreport.com
2. Call the free annual credit report number 877-322-8228
3. Request your copy of the Annual Credit Report Request Form and
Mail to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, Georgia 30348-5281
Under FACTA, consumers have the right to obtain your credit score from a credit bureau as well as an explanation of the key factors used in computing the score.
Comments - add comment