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Weekly Tip: Know Your Consumer Rights

As a cardholder, you have certain rights under the federal law. The Consumer Credit Protection Act insures that consumers are legally protected when it comes to borrowing money, applying for credit, and dealing with debt. It is broken down into several specific regulations to guarantee consumer protection.
  • Truth in Lending Act: This act requires issuers to explain all the terms of the contract in detail, in language the average adult can understand, before the consumer enters into an agreement. 
  • Fair Credit Reporting Act: With this act, credit reporting agencies have to follow a certain standard, and consumers have the right to dispute and correct any credit errors they might find.
  • Equal Credit Opportunity Act: This act protects consumers from discrimination when applying for credit. Lenders are prohibited from using, age, race, religion, sex, or nationality when determining a borrower’s eligibility.
  • Fair Debt Collection Practice Act: This law requires debt collectors to follow a certain set of rules when contacting a consumer about their debt. This prevents consumers from being harassed.
  • Electronic Fund Transfer Act: With this act, consumers are protected from fraud and unauthorized charges associated with withdrawing money electronically or over the phone from their account. 
Know your rights as a consumer and you will always be protected under the federal law!
on Wed, 2014-02-12 10:15