Your Credit and Your Consumer Rights

The US Government has enacted laws designed to protect the rights of the American consumer regarding the practices of Credit Bureaus, creditors and lending institutions.  These laws provide you with legal recourse if you ever feel that your rights have been violated.  The purpose of this article is to summarize these consumer protection acts, and most are covered in separate, dedicated articles in the ParkAveCredit Reference Library.   

Truth in Lending Act (TILA) is a legally binding law which insures that lenders must disclose the annual percentage rate (APR), which includes all interest, fees, finance charges, and other costs.  This allows consumers to compare credit offers on an equal basis and makes it a federal offense for lenders to use "bait and switch" type tactics.  For more information, see ParkAveCredit Reference Library article entitled, "Truth in Lending Act", which also provides a link to the official FDIC website for the full Law.  

The Fair Credit Billing Act (FCBA) protects consumers from unfair credit practices and sets forth procedures for the dispute of unauthorized charges and billing errors.  For more information, see ParkAveCredit Reference Library article entitled, "Fair Credit Billing", which also provides a link to the official FTC version of the full Law.

The Fair Credit Reporting Act (FCRA) was enacted to protect consumers from unfair credit information being included in their history by Credit Bureaus, and provides recourse to challenge and correct any errors.  For more information, see ParkAveCredit Reference Library article entitled, "Fair Credit Reporting Act", which also provides a link to the official FTC version of the full Law.  

The Equal Opportunity Credit Act (ECOA) is a legally binding law to insure that everyone is entitled to the same opportunity for credit.  It prohibits discrimination against applicants on the basis of race, color, national origin, religion, sex, age, family status, or handicap.    Further amendment also protects women, minority races, part-time employees, and others who may have suffered prejudicial treatment in the past.  For more information, see ParkAveCredit Reference Library article entitled, "Equal Credit Opportunity Act", which also provides a link to the official FTC version of the full Law.

The Electronic Fund Transfer Act (EFTA) is designed to regulate and define your rights and ability to dispute automatic debits that you have authorized for certain recurring payments from your bank accounts, and is under the control of the FDIC.  For full details of EFTA, see the official FDIC website at www.fdic.gov/regulations/laws/rules/6500-1350.html

The Fair Debt Collection Practices Act (FDCPA) provides consumers protection from deceptive or abusive debt collection practices and harassment from credit collection agencies.  For more information, see ParkAveCredit Reference Library article entitled, "Stop Credit Harassment", which also provides a link to the official FTC version of the full Law.