The Four Credit Laws You Must Know

Living with bad credit can leave you feeling hopeless, helpless, and confused. Dealing with harassing collection agencies day in and day out is a miserable experience and, if you believe what they say, escaping the vicious circle of debt and bad credit seems impossible.

You'll hear over and over again that it's neither possible nor legal to fix your credit and, if you can't fix your credit, how can you begin working on getting out of debt? Bad credit means there are no low-interest loans in your future.

If you don't know where to start, then pay attention. When it comes to credit (or bad credit), the old adage that knowledge is power is actually true.

Know the Federal Laws that Protect You

If you have bad credit, it's important to know your rights, because there are laws that protect them. The government has enacted legislation to protect American consumers like you from the harassment of collection agencies and curtail their bad behavior.

There are also Federal statutes that protect your right to improve your credit - legally. That means you don't have to live with constant abuse from creditors, hounding from their hired guns, and the embarrassment of bad credit.

It's true that the laws are complicated, but the basic ideas are not. Here's some information about how your rights are protected:

Fair Credit Reporting Act (FCRA)

Prior to the early 1970s, credit bureaus operated largely unregulated, acting with impunity in the Wild West days of the credit industry. Unsuspecting credit applicants were routinely profiled and personal information such as race, religion, and even personal habits factored into credit decisions. The FCRA now restricts this subjective practice and tightly regulates the behavior of credit bureaus. Here are a few provisions of the FCRA to keep in mind (because these are your rights!):

• You are entitled to copies of your credit report at a reasonable price and each consumer can request one (1) free copy per credit bureau per year.
• There are rules about who can legally access your credit report and for what reasons. There are penalties if creditors violate this permissible purpose.
• The FCRA placed a maximum time limit (in most cases seven (7) years) on how long a negative item can remain on your credit report.
• There are now strict guidelines on how a credit bureau is allowed to handle disputes. Most notable of these is the provision that credit bureaus must verify disputed items through reinvestigation and complete this within thirty (30) days.

This information might be boring, but remember that the FRCA protects your rights as a consumer!

Fair And Accurate Credit Transactions Act (FACTA)

An amendment to the FCRA, FACTA entitles you to one (1) free credit report per year from each bureau. It also allows you to dispute inaccuracies with information providers such as credit card companies, collection agencies, and banks, in addition to the credit bureaus.

Fair Debt Collection Practices Act (FDCPA)

This FDCPA puts a leash on debt collectors by regulating the tactics they can employ to collect debt. This means that if they don't mind their P's and Q's, you have a legal right to go after the people who are going after you. Under the FDCPA:

• Collectors can't contact you between 9 p.m. and 8 a.m. or at your place of employment if you inform them not to.
• They have to inform you of the purpose of their communications (both written and verbal) and are not allowed to misrepresent themselves or their intentions.
• They can't threaten consumers (in any of the creative ways they used in the past).
• You can challenge the validity of any information under your right to debt validation, and the collector is compelled to follow a protocol. If they don't, the debt has to be removed from your credit report!
• If you're being harassed by creditors, this might be the best part: you can request that they cease all communication with you and they have to leave you alone!

Fair Credit Billing Act (FCBA)

Under the FCBA, creditors MUST bill correctly and completely. It addresses, among other issues, unauthorized charges, charges with the wrong date or in the wrong amount, goods or services that weren't delivered as agreed, and a wealth of other common errors that creditors are now legally obligated to avoid.

As you can see, the law is on your side and, as a consumer, you have more rights than ever before when it comes to fair practices regarding debt, debt collection, and the behavior of creditors. Unless you're in the legal field, however, this information can be overwhelming and confusing.

Knowing your rights is a great start, but the next step in the right direction is contacting Lexington Law. The legal experts at Lexington Law have helped thousands of consumers struggling with debt and bad credit, and with their expertise in credit repair they could help you get on the path to a brighter credit future.

First Name: Phone Number: -- Zip: Last Name: E-mail Address:   Yes, please send me FREE info on other credit related offers. You will receive financial related offers from the Credit Improvers Newsletter and other marketing partners

Email us if you have questions. We want you in your dream home too!

Ben_Casey@creditforcouples.com