Laws Regarding Credit
Various federal laws have been enacted to protect consumers when applying for and using credit accounts. These laws give consumers the right to receive credit document disclosures as well as the right to dispute inaccuracies in billing and credit reporting, and the right not to be harassed by debt collectors. The Bureau of Consumer Protection, part of the Federal Trade Commission, has the responsibility for enforcing these laws.
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Fair Credit Reporting Act
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The federal Fair Credit Reporting Act promotes the accuracy and fairness of credit reporting by establishing the procedures under which information can legally be released, as under court orders or by written consent of the consumer. The act also gives consumers the right to correct inaccuracies in their credit files by filing a dispute with credit-reporting agencies. Consumers are also entitled to access free credit reports as well as disclosures of their rights.
Fair Debt Collection Practices Act
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The federal Fair Debt Collection Practices Act prohibits creditors and debt-collection agencies from using abusive, deceptive and unfair practices in dealing with consumers. The act covers personal and household debts such as credit cards, mortgages, auto loans and medical bills. Under the act, debt collectors are not allowed to contact consumers at inconvenient times of the day or at work without the consumer's permission. Further, the act prohibits debt collectors from disclosing information about your debt to a third party in an attempt to collect from you.
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Fair Credit Billing Act
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The federal Fair Credit Billing Act establishes procedures for disputes about billing errors involving "open end" accounts such as credit cards and revolving charge accounts. The act covers such issues as unauthorized charges, charges that list the wrong date or amount, charges for returned items and charges for bills sent to the wrong address after a creditor has received your new address information. You have the right to sue creditors who violate this act, and you may be entitled to monetary damages if you win the lawsuit.
Governing Authorities
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Various government agencies regulate credit laws and practices. The Bureau of Consumer Protection, which is part of the Federal Trade Commission, protects consumers against unfair credit practices and investigates and enforces credit laws. Divisions within the bureau regulate advertising practices, promote consumer education and protect the identity and privacy of consumers and businesses.
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References
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