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How Can You Exercise Your Credit Rights?Credit Rights under Federal LawsUnder the Federal system, consumer credit right is protected by legislation. Information about a consumer's credit cannot be used indiscriminately by anyone. There are two federal laws relating to consumer credit rights regulating the system. These are
- Fair Credit Reporting Act (FCRA), and
- Equal Credit Opportunity Act (ECOA).
ECOA lies down that subject to eligibility, every consumer has equal right to get a credit from regular credit providers. Though not a guarantee for credit, this ensures that factors regulating such credit would be consistent enough to leave no room for discriminations. The FCRA ensures that the consumer's rights and privacy are protected. These two laws effectively support consumer rights credit.
Knowing the LegalitiesIn today's era of Internet and World Wide Web, it is not at all difficult to have first hand knowledge regarding rights under the fair credit or rights under the fair credit reporting. The Federal Government itself maintains a number of informative websites. Several state governments follow suit. The two websites relating to Fair Credit Reporting Act and providing information to the consumer regarding the credit report rights and credit reporting rights are:
- http://www.ftc.gov/os/statutes/fcra.htm (verbatim text representation of the law)
- http://www.ftc.gov/bcp/conline/pubs/credit/fcra.htm (brief summary of the law)
A consumer seeking information relating to his consumer rights credit card debt or any information on his rights as a consumer can refer to the provisions of the Fair Credit Reporting Act. Requirements for Accessing Credit Reports As a protection against possible abuse, all agencies are required to fulfill the following conditions before accessing the credit information of a consumer:- They have to provide sufficient proof justifying the purpose for which the credit information is required.
- They should provide the facilities of a background check and on-site inspection of the agency.
- The agency must hold a valid up to date license for carrying on the business.
- There should be a written contract executed between the agency and the customer whose credit reports the agency is se eking prohibiting any possible misuse of the data obtained.
The credit report of a customer can be accessed without his permission in prescreening for credit offers. Also when a judicial order requires revelation of such information in any proceedings conducted thereon. Opting out of prescreening may result in not getting any further pre-approved credit card offers.
Continue to:Top Tips for Exercising Credit Report Rights
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