Protecting Your Credit Kelly Northcott and Audra Laird

What Is Credit? An arrangement to receive cash, goods, or services now and pay for them in the future

Billing Errors and Disputes Steps to Correcting a Billing Error or Dispute: Inform Creditor in writing with evidence to your case (telephone call may not be sufficient) Pay portion of the bill that is not in question Creditor must acknowledge your claim within 30 days Creditor will either adjust your account or prove the bill is correct within 90 days If Creditor is mistaken, you don’t pay the bill If there is no mistake, you must pay the bill, along with any additional charges that have accumulated throughout this time

Billing Errors and Disputes Protecting Your Credit Rating Credit Rating: a measure of a person’s ability and willingness to make credit payments on time Creditors cannot damage your credit rating or reputation while you are negotiating a credit dispute Also, Creditor cannot take any money from your account until your complaint has been dealt with

Billing Errors and Disputes Defective Goods and Services Fair Credit Billing Act- if you purchase an item that is defective and the store will not accept a return, you can tell your Creditor to stop payment because a real attempt was made to resolve the issue

Credit and Stolen Identity How Can Someone Steal Your Identity? Imposters: people who deceive others by assuming false identities These imposters use your name, SSN, credit card number, or other personal information to steal funds or purchase items from your accounts This financial crime is called “Identity Theft”

Credit and Stolen Identity How to Fix It: The Federal Trade Commission recommends: Contacting the credit bureau Contacting your creditors Filing a police report

Protection from Theft or Loss How to Protect Your Personal Info: Shred financial documents before discarding them Make sure your card is always returned to you after making a purchase Keep a record of all your credit card numbers Notify the credit company immediately if your card is lost or stolen

Protection from Theft or Loss Keeping Track of Credit: Keep track of your credit report to monitor any discrepancies (even if you didn’t think you had any Steps to Protect Other Accounts: Close accounts you think have been illegally accessed, immediately Make password-only accounts, and create new PINs for cards

Protection from Theft or Loss Government Agency Protection: After continuous identity theft issues (especially for companies) contact: Privacy Rights Clearinghouse of the Federal Trade Commission U.S. Secret Service Social Security Administration

Protection from Theft or Loss Protect Credit Info on the Internet: Use a secure browser Keep records of online transactions Review your monthly bank and credit statements Read privacy and security policies on the websites Never give passwords over the internet Never download files sent to you by strangers

Cosigning a Loan Cosigning: agreeing to take responsibility for loan payments if the other person fails to make them Be sure you can pay back the loan Even if you don’t have to pay back the debt, the liability can impact your credit You could lose property that you pledge if the borrower defaults Some states have laws giving you additional rights, so check Request a copy of overdue payment notices so you can protect your credit

Complaining About Consumer Credit Consumer Credit: use of credit for personal needs You may file a complaint if you think the lender is violating consumer credit protection laws

Complaining About Consumer Credit Credit Card Acts: prevents unfair increases in insurance rates prohibits unnecessary fees (penalties must be proportional) requires fair timing with card payments provides disclosures of card terms and conditions ensures safeguards for young people (cosigning)

Complaining About Consumer Credit Truth in Lending and Consumer Leasing Acts: you can sue if creditor doesn’t disclose all terms and conditions, or gives false information Equal Credit Opportunity Act: you cannot be discriminated against for any reason, or you may sue for damages

Complaining About Consumer Credit Fair Credit Opportunity Act: creditors that fail to correct billing errors will give up to the amount owed on the item and other charges (up to a combined $50), or you may sue for damages Fair Credit Reporting Act: you may sue creditors that violate rules of accessing, fail to correct errors in your credit records and files

Complaining About Consumer Credit Consumer Credit Reporting Reform Act: places the burden of proof for accurate credit info on the credit bureau Your Consumer Credit Rights: Complain to a creditor File a complaint with the government If all else fails, sue the creditor

Importance of Protecting Your Credit Credit cards are convenient, but even the most careful user might encounter identity theft issues, or billing disputes. That’s why it is important to protect your identity and your credit, so you can retain a good reputation and guard your finances.