How to Enforce Banking Consumer Rights

There are federal and state laws in place which help to protect the consumer's financial rights. These laws regulate the activities of banks, credit unions and savings and loan companies. Knowing your banking consumer rights will help to protect your hard-earned money.

Instructions

1. Expect the right to full disclosure when you obtain an adjustable-rate mortgage loan. Your bank should give you all the details about this loan, including when and how the rate may increase and how this will affect you.

2. Compare the costs of using credit. Consumers have the right to compare the information on the different available credit options and choose the one that suits them best.

3. Expect your bank lender to give accurate information about the terms of a loan. The lender must not use unfair practices and must not mislead you.

4. Report misuse of your credit immediately. You have limited liability if your debit or credit card is used without your knowledge. Your transactions using these cards are protected under the Electronic Fund Transfer Act. You are also entitled to full disclosure of any issues with your charge card under the Fair Credit and Charge Card Disclosure Act.

5. Apply for credit locally. By law, every financial institution must provide credit to members of the community in which it is based. It is against the law for a bank to deny credit based on factors such as race, age or nationality. You may request the reason for a denial in writing within 60 days.

6. Expect the Fair Credit Billing Act to enable you correct errors on your credit account and the Fair Credit Reporting Act to enable you correct mistakes on your credit report.

7. Check the laws of your state when you need further help in resolving issues with a banking institution. State and federal laws regarding banking houses usually coincide but the federal laws will take precedence in areas where the state law is different.

8. Try to resolve any complaints you may have with an official at your bank. If that is ineffective, contact the office in charge of regulating this bank to help you enforce your banking rights.

9. Visit the website for the FDIC (Federal Deposit Insurance Corporation) for a complete list of laws that enforce consumer banking rights (see Resources below).

Tips & Warnings

• File complaints about unfair debt-collection practices with the Federal Trade Commission.

Resources

• List of consumer banking rights from the FDIC