1. Protecting Your Credit
Kelly Northcott and Audra Laird

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

3. 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

4. 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

5. 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

6. 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”

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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

18. 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.