Protection of credit right Chapter 18 sec 4 Protection of credit right

CREDIT APPLICATION REGULATIONS Truth-in-lending act of 1968- was the first of series of credit protection laws. The law requires that the lender clearly state the annual percentage rate (APR) and total finance charge. Truth-in-lending act also protects consumer against unauthorized use of credit cards Equal credit opportunity act- prohibits creditors from denying a person because of age, race, sex, or marital status.

CREDIT USE REGULATIONS Fair credit billing act- requires prompt correction of billing mistakes. To get correction of error you must notify the creditor in writing within 60 days after your statement was mailed. Follow these steps after you report an error while waiting for an answer, you are not required to pay any amount in question. The creditor must acknowledge your complaint within 30 days unless your statement is corrected before that time. You do not pay finance charges on any amount in error. If no error is found, the creditor must bill you again. The bill may include finance charges that have accumulated plus any minimum payments that were missed while the statement was being questioned.

CREDIT USE REGULATIONS Fair credit billing act also provides that you may withhold payment of any balance due on defective merchandise or services purchased with a credit card. Fair credit reporting act- is the law that gives consumers the right to know what information credit bureaus are giving to potential creditors, employers, and insurers. This act also requires that credit bureaus must delete any information dealing with a personal bankruptcy that is more than 10 years old.

CREDIT USE REGULATIONS Consumer Credit Reporting Reform Act places the burden of proof for accurate credit reporting agency rather than on you. Debt collection agency attempts to obtain money that is past due Fair debt collection practice act requires that debt collectors treat you fairly

CREDIT PROBLEMS AND ASSISTANCE A person who cannot pay his or her bills when they are due might take these four steps. Contact creditors and explain the situation. Make a realistic proposal for when and what you can pay. Don’t just say, “I can’t pay.” Keep any promises you make. Make a written copy of your agreement to avoid problems later. Debt repayment plan- a creditor and a debtor develop this agreement to reduce payments to a more manageable level and still pay off the debt.

CREDIT PROBLEMS AND ASSISTANCE Credit counselor discuss and suggests actions to take to reduce spending and eliminate credit difficulties. Bankruptcy is the legal process of reducing or eliminating an amount owed.

Sec 4 review questions What is bankruptcy? True/False. Was truth-in-lending the first series of protection laws? True/False. Credit counselors discuss your personal feelings? What is one thing fair credit billing act require?