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7 Consumer Credit Laws You Should Know if You are Trying to
Repair Your Credit
There are seven consumer credit laws you should be aware when
dealing with your credit.
1. The Truth in Lending Act
The customer had to be told the true cost of borrowing, so
they could figure out exactly what the charges would be. You must
be informed, in writing of the finance charge and the APR before
you sign any contract. Also, you need to be informed of the
method they are going to use to calculate the balance on which
you pay a finance charge.
This Act gives you a chance to change your mind when you use
your home as security in a transaction. The first 3 day right of
rescission gives you 3 business days to cancel the transaction
and the creditor must give you this notice prior to the
transaction.
2. The Fair Credit Reporting Act
Check other bonus material for your rights. Basically this act
regulates the activities of credit reporting agencies or credit
bureaus and gives the FTC responsibility for enforcement.
3. The Fair Credit Billing Act
This law establishes procedures requiring creditors to
promptly correct billing errors, and allows the consumer to
withhold payment on damage goods, and makes creditors promptly
credit your payments.
4. The Fair Debt Collection Practices Act
This act establishes the guidelines for collectors to follow.
They may not contact you at unreasonable times or places. Unless
agree, they must not contact you before 8 am or after 9 pm, nor
at your place of employment. You must receive a written
explanation of your supposed debt and what to do if you feel you
do not owe the money.
5. The Equal Credit Opportunity Act
This Law prohibits discrimination in the granting of credit of
any form due to sex, marital status, race, religion or age.
6. The Electronic Funds Transfer Act
This act gives protection in all stages of modern banking
techniques such ATM, telephone transfers, computer transactions,
etc. Its limits for the first time consumers' liability for lost
or unauthorized use of debit or electronic cards are similar to
those in place for credit cards.
Notifying the bank within 2 days, your maximum liability is
$50. If you miss that timeframe, you could be liable up to $500
in charges. After 60 days, you'll be liable for the entire
amount.
7. The Credit Repair Organization Act
This law states that the credit repair organizations could not
make a statement that was misleading. They were prohibited from
advising their clients to make a misleading or untrue statement
to a credit bureau.
This law gives the consumer 3 day right of cancellation, which
needs to be on the contract and must direct you on how to cancel.
The document must detail the services that will be provided,
guarantees, time frame for service and cost for the consumer.
Copyright © 2005 ExcellentCreditNow.com - All
Rights Reserved
Carmen Shearer is the President and CEO of S&S Financial
Solutions. She has worked in the finance arena for over 10 years
and holds two engineering degrees and an MBA from a branch of
Harvard Business School. S&S Financial Solutions offers you
credit repair tools, debt elimintation programs and personal
financial information with a 90 days guarantee. For more credit
related information go to: http://www.excellentcreditnow.com
or for how to eliminate your debt go to http://www.excellentcreditnow.com/NoMoreDebt.com
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