12 DAYS OF MASTERING CREDIT - DAY 6

DAY 6

CONSUMER RIGHTS

Depending on your goals repairing your credit can be beneficial to almost anyone. Additionally you also have certain rights under federal law that the credit bureaus & your creditors MUST abide by. Credit repair is NOT illegal; as a matter of fact most high-profile positions use various forms of credit repair, including most newly elected government officials, corporate executives & professional athletes. The Federal Trade Commission (FTC) warns against using credit repair because unscrupulous companies are only interested in taking your money & not helping you achieve your goals.

We’ve listed below four of the main laws that govern and protect your credit as a consumer.

 

Fair Credit Reporting Act compels credit bureaus. The Fair Credit Reporting Act (FCRA), which in a nutshell informs the credit reporting agencies what they can and can't do. The FCRA guarantees access to credit reports. Regulates who has "permissible purpose" to acquire a consumer's report. Places statutory limits on how long information can be reported. Details how a CRA must handle disputes, including but not limited to those posed by consumers.

Fair Credit Billing Act compels original creditors. The Fair Credit Billing Act (FCBA), which undergirds the more detailed and exhaustive Truth in Lending Act, which was for all intents and purposes was created to “police” the original creditors. The FCBA requires creditors to bill correctly and completely, and it's the FTC's job to make sure that the statute is equally applied and complied to. The FTC condenses the statute's exclusions as follows: "unauthorized charges; charges that list the wrong date or amount; charges for goods and services you didn't accept or weren't delivered as agreed; math errors; failure to post payments and other credits, such as returns; failure to send bills to your current address provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification."
 
Fair Debt Collection Practices Act compels third party collectors. The Fair Debt Collections Practices Act (FDCPA), which regulates debt collectors. Provides behavioral standards for acceptable third-party collections behavior and specifies that Collection Agencies must always include several legal stipulations in their dealings with debtors. Allows the debtor to formally request that the CA "cease and desist" from communicating with the debtor further. Specifically details a consumer's right to request further information regarding an alleged debt. 

Quick Summary of FDCPA:

Collectors can't call after 9 pm or before 8 a.m. local time Section FDCPA 805 (a)(1)

Collectors can't telephone you at work if you tell them not to Section FDCPA 805 (a)(3)

Collectors should NOT give information about you to third-parties (friends, family, and coworkers)

HIPAA

Health Insurance Portability and Accountability Act of 1996 (HIPAA), which regulates health providers. Title 2.1 of The Privacy Rule took effect on April 14, 2003, with a one-year extension for certain "small plans". The HIPAA Privacy Rule regulates the use and disclosure of certain information held by "covered entities" (generally, health care clearinghouses, employer sponsored health plans, health insurers, and medical service providers that engage in certain transactions.) It establishes regulations for the use and disclosure of Protected Health Information (PHI). PHI is any information held by a covered entity which concerns health status, provision of health care, or payment for health care that can be linked to an individual. This is interpreted rather broadly and includes any part of an individual's medical record or payment history.

 

Remember these laws are in place to protect consumers against unfair credit practices like billing statement errors, debt collection, credit repair, and credit reporting. These laws do not guarantee that an individual will be granted credit by a potential creditor nor does it ensure that a consumer will have good credit. Finally these laws are in place to guarantee that the credit bureaus, creditors and debt collectors do not run amuck with your credit and your credit reports.

 

If you want to get started on your new future by rehabilitating your credit then contact us today at 1-888-824-7622 or The Credit Genius.