Defend Your Consumer Rights

Consumers in this country have certain protectable rights. One of a consumer's most valuable assets is his credit rating. Being able to protect and defend your credit is financially critical. Without these consumer credit rights and the ability to defend them, a bad credit rating, whether it's accurate or inaccurate, can adversely effect your ability to apply for a loan, credit card, or even to rent or buy a house. So as a consumer, be sure to vigorously defend your credit rights.

Letting the Federal Trade Commission Help

Your ability to make amends of your bad credit or fix an inaccurate credit rating is made possible through organizations such as the Federal Trade Commission (FTC). The FTC prevents a creditor from discriminating against those who they think should not be given credit. The FTC insists that all financial institutions give everyone applying for their credit services a free and fair chance.This is not to say that credit is guaranteed because of the FTC. It just means that you have the right to be considered for a loan or credit card even after potential creditors have reviewed your credit history.

Getting Backed by the Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is another vehicle that helps protect consumers. This act guarantees that the credit report being viewed by prospective lenders must be accurate and provide only up-to-date information. The FCRA also protects your welfare by allowing you to see a copy of your own credit report in order to check for inaccuracies and balances among other things.

Under the FCRA, you also have the right to know who requested your credit report, whether it's a financial institution or a prospective employer. If the person requesting your information is a financial institution, you have the right to know up to one year after the information is requested. Similarly, you have up to two years to know if a prospective employer requested your credit report.

Even if you have applied for a loan and your request has been turned down, the financial institution has to supply information about why your request was denied. They are also required to give you the name of the credit reporting agency they used. It would be in your best interest to obtain a copy of the aforementioned credit report in order to see why your request was denied. That way, you can correct any mistakes that may be on your report. Should you have reason to believe the credit report agency was inaccurate in their findings, you have the right to notify the agency in writing. In turn, the agency is required to investigate the information on your report.

Finding Protection with the Equal Credit Opportunity Act

When it comes to obtaining a loan, you should know that you cannot be denied a loan because of your sex, race, or religion. The Equal Credit Opportunity Act (ECOA) protects you from discrimination. It prevents the financial institution from making credit choices based on the color of your skin, your marital status, nationality, or sexual orientation. The ECOA, which also protects businesses who seek credit, gives you the right to acquire information on why your credit was disapproved.

Using the Fair Debt Collection Practices Act

Most will agree that there are a few debt collectors who go out of their way to put the fear of God in consumers. They are good at making you think that if you don't settle your credit balances at an appointed time, you will lose everything, even the roof over your head. Thankfully, there is protection from even those kind of debt collectors.

Under the Fair Debt Collection Practices Act (FDCPA), the debt collector is to approach you in a civilized and non-threatening manner in order to collect his debts. Under the FDCPA act, no debt collector is to contact you at work or at home after 10 at night. In addition, the collector cannot harass or intimidate you.

Furthermore, the debt collector should always tell the truth and never give you the impression that you could serve jail-time for not paying what is owed. If you feel you are being harassed by a debt collector, this legislation provides that you can file a complaint that would prevent the debt collectors from continuing to contact you.

Always be aware of what your rights are especially when dealing with creditors. The more you know, the more you'll able to assert yourself should the creditors think they have the last say in your financial concerns.