Credit LawsThings you need to know

Fair Debt Collections Act Debt collectors

• Cannot call before 8 am and after 9 pm• Harass or abuse you in any way• Lie about or imply you have committed a

crime if you do not pay them• Conceal their identity

If you rights have been violated• You have the right to sue

Fair Credit Billing Act Error on you bill

• Call creditor and inquire about error• Follow up with letter within 60 days after it

first appears on bill • Creditors have to respond within 90 days

Remove error Or explain why it is correct

Only applies to revolving credit

Fair Credit Reporting Act Gives you the right to 1 free credit

report each year You have the right to dispute errors

Fair Accurate Transaction Act

Allows fraud alerts with CRA You have a right to see your Credit

Score Receipts can only show last 5 digits

of Card # Lenders must take action on identity

theft even before you are aware

Credit Cardholders Bill of Rights Act

Strict finance charge and interest rate rules• Cannot increase interest rates for the first

12 months• Promotional rates must be for 6 months• Rate increases can only apply to new

purchases• Payments due same day each month• Statements need to be sent at least 21 days

before due

Truth in Lending Law• Also know as: Consumer Protection Act• All costs be disclosed (Disclosure Statement)• If your card is lost or stolen you may only be

liable up to $50 for all unauthorized charges.

Usury Law – State Law• Limits the amount of interest that a lender can

charge

Fair credit Opportunity Act You can not be denied credit based

on:• Age, sex, martial status, religion, nationality

You can be denied credit based only on:• Poor credit history• Not enough income to pay• Too much current debt

Getting out of debt…

1. Create a budget2. Contact creditors3. Credit counseling4. Debt consolidation is combining

debts5. Last resort: Bankruptcy

Credit Test Single purpose

/multi-purpose Stolen Identity theft Credit Bureaus (CRA) $ amount if Credit

Card stolen Creditor/debtor Credit Union Consumer Finance

Co. Local Bank

Collection agency Revolving Credit Principal Finance charge Secured/unsecured

loans Cash Advance FTC All Acts/Bills Capacity/Character/

Credit History