How to Enforce Credit Consumer Rights

Credit is a very important part of life in America and requires protection. A good credit history makes it easier to purchase goods on credit and even affects the type of job an individual is eligible for. A bad credit history automatically makes an individual appear less trustworthy. The use of consumer credit is monitored and regulated by the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Together, they dictate how consumer credit information will be collected and used.

Instructions

Difficulty: Easy

1. Enforce your right to a free credit report each year. The Fair and Accurate Credit Transactions Act requires credit-reporting agencies to provide one free credit report to each individual per year. The agency must verify all information on the credit report.
2. Expect negative information to be expunged from your credit report after 7 years. Bankruptcies, however, are removed after 10 years. If you successfully dispute negative information on your credit report, the agency cannot put it back on without informing you first.
3. Be aware that the information on your credit report is supplied by information furnishers. By law, they are expected to provide accurate information to the credit-reporting agencies, inform you when negative information is about to be placed on your record within 30 days and look into any information on your credit report that you dispute.
4. Expect to be notified if a negative decision is taken based on the contents of your credit report. For instance, if a retailer decides against extending credit to you, he must inform you of this. In such cases, the person who checked your credit must tell you which credit reporting agency provided the information and give you a chance to dispute it.
5. Enforce your right to an error-free credit report. Amongst other rights, the Fair Credit Reporting Act allows consumers to dispute any errors in their credit report and request a correction.
6. Claim damages if your rights under the Fair and Accurate Credit Transactions are violated. You can claim statutory, punitive and actual damages, as well as attorney fees, in a state or federal court.

Tips & Warnings

• Guard your credit status carefully and avoid frivolous checks of your credit. Each credit check increases your credit score. The lower the score, the better you stand.
• Be wary of invitations from unrecognizable companies to settle a debt for a percentage of the total amount with promises to expunge the debt from your credit report.