Education is the first line of defense against fraud and deception; it can help you make well-informed decisions before you spend your money. Today’s exercise, read up!
Fair Debt Collection Practices Act (FDCPA):
The law outlines consumers’ rights to dispute overdue bills placed with collection agencies, an original credit using a different name to collect the debt, or a lawyer collecting a debt for a creditor.
The FDCPA prevents debt collectors from using unfair, abusive, or deceptive practices to collect overdue bills. Some regulated practices include:
Fair and Accurate Credit Transactions Act:
This act replaces the Fair Credit Reporting Act and provides for everyone to receive one free credit report per year from each of the three major credit bureaus, TransUnion, Experian and Equifax. To access your free report, visit www.annualcreditreport.com or call 1-877-322-8228. It also provides for increased accuracy in reporting, prevention of identity theft and restricts the marketing of financial products using sensitive information that is shared with affiliates.
The Truth in Lending Act – is designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs.
Equal Credit Opportunity Act – This law stops a creditor from discriminating against a consumer on the basis of age, sex, or marital status, reliance on income from a public assistance program, and race, color, religion, or national origin.
Fair Credit Billing Act (FCBA)
This law protects you against billing errors and provides a system to dispute them.
The FCBA settlement procedures apply only to disputes about “billing errors.” For example:
To take advantage of the law’s consumer protections, you must:
Send your letter by certified mail, return receipt requested, so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.