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Credit card Holder protection laws

Getting your own credit card certainly has its perks but before you fill up that application form and do get one, be aware of the existing credit card laws and also be assured that the law is going to protect you. Read on and always be legally ready:

1. Truth in Lending Act Before you even get a credit card or loan, you are already shielded from unfair lending practices. For example, the issuer must disclose in writing and in plain language, the terms, interest rate and other costs of that loan or line of credit.

2. Fair Credit Billing Act Inaccurate billing charges are not uncommon that’s why there is a law that protects you from it. If you meet certain guidelines, the Fair Credit Billing Act limits your financial responsibility for unauthorized charges to just $50 and says you dont have to pay for:

a. Merchandise that you ordered but never received.
You have the liberty to accept or not accept goods and services and you don’t have to pay for them.

b. Double charges and other incorrect charges.
In fact, the power of this law is so great that its sensible to pay for expensive items with a credit card because of all the consumer protection the law offers.

3. Fair Credit Reporting Act
In 2003, the Fair and Accurate Credit Transactions Act was amended and it makes sure that the financial data listed in your report is correct. For instance, it provides:

a. The right to dispute inaccuracies. You may with the bureau, which then has 30 days to investigate. During that time, a notice of dispute will appear on your report. False or unverifiable information will be removed from your report.

b. The right to access your credit files. If you are denied credit, you have the right to know which credit report the lender used and receive a free copy of it to make sure that the information is correct. Consumers are also guaranteed the right to one free report from each of the credit reporting bureaus annually -- or anytime if you suspect fraud

c. A time limit for negative information. In most cases, harmful information must eventually be removed from your credit report. Defaults and late payments typically drop off the reports after seven years while Chapter 7 bankruptcies remain for 10.

4. Fair Debt Collection Practices Act
This law relieves a huge amount of anxiety from distressed borrowers. This law also defends you against third-party collection abuses. Specifically, collectors are prohibited from:

• Calling multiple times a day, before 8 a.m. or after 9 p.m. or at work if you tell them the calls are jeopardizing your job.
• Discussing your debt with someone other than your spouse without your permission.
• Using profanity and making false threats. If they say they are going to sue you, then they have to take that action.
• Misrepresenting him/her or the purpose of the call.

5. The Credit Card Accountability, Responsibility, and Disclosure Act
This is latest consumer credit law to be passed and it’s powerful and detailed. A few highlights include:

• The interest rate paid on existing balances cannot be raised as long you pay on time and as originally agreed.
• You have the right to opt out of credit card rate increases and to pay off your debts under the original terms.
• You must be given 45 days notice of rate, fee and finance charge increases. • Double-cycle billing is banned, which eliminates interest charges on debt you pay on time.

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