Debt Management Services

Debt Management & Your Consumer Credit Rights

When you’re facing problems with debt and you need debt relief, it can seem like it’s you against the world. While you may feel like the deck is completely stacked against you, you do have rights as a consumer and there are laws and government agencies put in place to make sure your rights are protected. Knowing your rights as a consumer can help protect you from unethical business practices as you work to put your finances back in order.

You don’t have to feel like you’re facing your debt problems alone. Give us a call at 1-888-881-3619 to speak with a certified credit counselor. They can assess your budget with a free, confidential debt consultation and help you understand your rights as a consumer. If you prefer to get started online, we invite you to fill out a Free Debt Analysis and a counselor will contact you soon.

Consumer Credit Protection Act

This is basically the first piece of legislation passed by Congress to protect the credit rights of consumers. It was enacted in 1968 and includes the Truth in Lending Act, which was designed to protect consumers by providing guidelines on the disclosures and informed use of consumer credit. It also established the National Commission on Consumer Finance. This landmark piece of legislation is effectively the foundation of all consumer credit rights and protections.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) was passed in 1971 to regulate the collection and use of consumer credit information. This law established the practices used by consumer reporting agencies, including the credit bureaus like TransUnion, Equifax, and Experian. Under the FCRA, consumer reporting agencies are required to provide any consumer with information included in their credit report, which is why you are permitted to get one credit report for free each year (get your free report at annualcreditreport.com). They are also required to verify the accuracy of the information in case of credit disputes by the consumer. It also stipulates a consumer reporting agency may not retain negative information for an excessive period, which is why bankruptcies only stay in your report for 10 years and other penalties only remain for 7 years.

Fair Debt Collection Practices Act

Added to the Consumer Credit Protection Act in 1978, the Fair Debt Collection Practices Act (FDCPA) is one of the most important pieces of federal legislation ever passed when it comes to debt and your rights as a consumer. The purpose of the act was to eliminate harassing and abusive collection practices from creditors and collections agencies as they attempt to collect on unpaid debts. If you feel like you’re being harassed, intimidated, or bullied by a collector, you don’t have to just take it! Click on the link above to find out more about the protections you have under the FDCPA or call 1-888-881-3619 to speak with a certified credit counselor who can help you find more information and stop those abusive collection attempts.

Credit Card Accountability, Responsibility, and Disclosure Act

The Credit Card Accountability, Responsibility, and Disclosure Act (Credit CARD Act) was passed in 2009 in response to unfair lending practices seen as a root cause of the financial sector meltdown and Great Recession in 2008. It establishes creditors must maintain transparent practices when extending lines of credit to consumers. Some of the major parts of this bill focus on how your credit card company can charge your account:

1. Creditors must provide 45 days notice for interest rate increases.
2. Creditors cannot arbitrarily increase interest rates on a consumer in good standing.
3. Debt paid within the grace period cannot be subject to interest charges.
4. Interest-only balances cannot be assessed fees.
5. Penalty APR must be removed from an account if a consumer pays on time for 6 consecutive months.

There are also a number of provisions to ensure your credit card statement is delivered on time each month with enough time to allow you to pay the bill. Information on the statement must be easy to find as well. In addition the Credit CARD act also protects you from misleading gimmicks and promotions designed to confuse consumers on the terms of a credit contract.

Dodd-Frank Wall Street Reform and Consumer Protection Act

This act, passed in 2010, was the largest financial service industry reform passed by the U.S. Congress since the legislation that followed the Great Depression. It provides sweeping reforms to a number of financial sectors, but specifically creates more rules to protect consumers from confusing and unclear lending practices. All lending practices must be clear and transparent, meaning you can actually understand that credit card offer before you sign up. The biggest part of this consumer protection comes in the creation of the Consumer Financial Protection Bureau.

Consumer Financial Protection Bureau

This relatively new federal agency was designed to serve as the watchdog of consumer rights when it comes to the financial industry. It’s similar in structure FTC, but specifically focused on the financial sector in order to help avoid financial disaster caused by misleading and confusing consumer lending practices. Like the FTC, the CFPB has the authority to prosecute, so any organization found to be using these unethical lending practices faces penalties. This means you have a government agency in your corner willing to fight for your rights as a consumer and any company found violating those rights can face serious consequences. If you have a complaint about a creditor, lender, or any other financial service provider you can make your complaint at www.consumerfinance.gov.