Laws That Protect You

Hold your wallet! Bait and Switch Tactics for Rate Hikes On Promotional Offers; Hidden Transaction Fees for Balance Transfers and Convenience Checks; Credit Limit Decreases Resulting in Bounced Checks and Overlimit Fees; Rate Hikes Based On Credit Reports and Credit Usage; Annual Fees That Trigger Overlimit Fees.

These are just some of the examples of abuses and pushing the legal limit by credit card companies. Fortunately, there are laws that protect you and regulate the credit card companies. Some of the more important laws are: Fair Credit Reporting Act; Equal Credit Opportunity Act; Fair Credit Billing Act; Fair Credit Debt Collection Practices Act; and the Fair and Accurate Credit Transactions Act.

The Consumer Credit Protection Act of 1968, which launched Truth in Lending disclosures, was landmark legislation. For the first time, creditors had to state the cost of borrowing in a common language so that you, the consumer, could figure out what the charges are, compare costs, and shop for the best credit deal.

Since 1968, credit protections have multiplied rapidly. The concepts of “fair” and “equal” credit have been written into laws that bar unfair discrimination in credit transactions, require that consumers be told the reason when credit is denied, let borrowers find out about their credit records, and set up a way for consumers to settle billing disputes.

Each law was meant to reduce the problems and confusion about consumer credit, which as it became more widely used in our economy, also grew more complex. Together, these laws set a standard for how individuals are to be treated in their financial dealings.

The laws say, for instance,

That you cannot be denied a credit card just because you’re a single woman.
That you can limit your risk if a credit card is lost or stolen.
That you can resolve errors in your monthly bill without damage to your credit rating and.
That you cannot have credit shut off just because you’ve reached age 62.

But let the buyer be aware! It is important to know your rights and how to use them. Back