Debt Free Search
   
 
 
 

Your Credit History - Ensure You Know Your Rights


Knowing your rights is what every consumer needs to know!

Building a good credit history is extremely important. There are many things that you can be deprived of if you do not have a good credit history.

The significance of building credit goes far beyond clothes and groceries. It is more than just those petty-cash advances or cash-back rewards. Building credit means building your life as well.

Why? Simply because the way you handle your credit places a great impact on your way of life, on your career, on the way you transact business with other people, and even on the place where you live.

Your credit history is one of the most important factors that employers, lenders, property owners or business owners consider.

That's why it is very important for you to learn how credit is given or rejected. It is also essential to know what you need to do in case you have been adversely reported.

In the USA the Federal Government has provided citizens certain important laws that control credit. These rights have been stated as provisions on Fair Debt Collection Practices Act and Fair Credit Reporting Act.

Regarding these two laws, every consumer is entitled to all the rights stated in them. It is very important that consumers know these rights so that they are fully aware as to any maltreatments or bad practices of debt collectors or lenders.

The Fair Debt Collection Practices Act

This is one of the written laws of the United States of America which has been included in the United States Code as Title VIII of the so called: "Consumer Credit Protection Act".

The main focus of this consumer protection law concerns guaranteed "ethical practices" when collecting debts from consumers. It also trie to provide consumers with an opportunity to obtain and dispute legalization of any information concerning a specific debt in order to guarantee that the data is correct.

In essence, the "Fair Debt Collection Practices Act" encourages just that: rational, non-discriminatory treatment of consumers by stopping debt collectors from uusing unjust, offensive, or misleading methods.

The "Fair Debt Collection Practices Act" applies to qualified debt collectors capable of collecting loans that they did not create.

However, this act does not, in theory, concern department stores, banks, and other lending institutions which have their own debt collectors. No reputable lending company is allowed to make use of these practices.

Under the "Fair Debt Collection Practices Act" are the following provisions:

1. Debt collectors are only permitted to contact other people, aside the debtor himself, purely to find out the whereabouts of the debtor.

2. Debt collectors are not permitted to contact the debtor before 8 o'clock in the morning or after 9 o'clock in the evening, local time.

3. Debt collectors are not allowed to intimidate, pressurize or make threats against the consumer regarding legal action or arrest if it is not planned, considered, or made known to third parties, or at least talk about debts.

The Fair Credit Reporting Act

This act upholds the confidentiality, discretion and truth of information as used for creating consumer credit reports. It seeks to control the distribution, collection and utilization of "consumer credit information".

This law lays down that the credit reporting agencies must uphold absolute, full, and accurate files and information.

This act entitles consumers to receive credit reports and to take action to validate the correctness of information contested by a customer.

The public is entitled to such actions under this law:

1. Credit bureaus are allowed to provide credit reports only to those with a lawful business cause.

Credit bureaus are not permitted to disclose information or credit reports to institutions which have no legal basis for their request for particular credit report. Only entities such as insurers, employers, creditors and government agencies are permitted to receive an individual’s credit report as part of the evaluation process.

2. The consumer’s right to know regarding denied credit.

In cases of denied credit, consumers have the right to know the details of such report. With this information, consumers can identify which credit bureau issued the report. In this way the consumer can check if there has been any discrepancy.

These are just a few of the rights consumers enjoy under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Under these laws, the rights of the consumer to a just and fair treatment are upheld.

Now click here for details about dealing with creditors, the next step in your free Debt Relief Guide.