Consumer Credit Rights Everyone Should Know

November 20th, 2020 by

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Every consumer has rights when it comes to their credit. Here are a few, according to MyFICO.

Free Credit Reporting Act

The Free Credit Reporting Act gives rights to the consumer to know what is on their credit file. Traditionally, this report was free to access once every 12-months via Annual Credit Report.com. But due to the COVID-19 pandemic, this can now be accessed weekly through April 2021. 

RELATED: Experian, Equifax, TransUnion Offering Free Weekly Credit Reports Through April 2021

This Act also makes sure that your credit is accurate. If you have any bad debts or bankruptcies more than seven or ten years old, these can be removed from your credit report, depending on the type of bankruptcy.

Truth in Lending Act

The Truth in Lending Act makes sure that lenders treat consumers fairly and must ensure that all costs for borrowing are easy to understand before you agree to them. This does not, however, cap the charges that the lenders can set for their services.

Equal Credit Opportunities Act

The Equal Credit Opportunities Act ensures that the lenders only use your financial information and everyone is treated equally. 

This means that lenders cannot use marital status, religion, race, color, and sexual orientation to decide what form of credit you have access to.

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Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act prevents collectors from reporting any unverified debts and informs third-party collection agencies on how to contact customers. 

As a consumer, you are allowed to request verification from third-party agencies. This could be the amount of debt, verifying the debt is your name, and if the collection agency has the right to collect the debt. If this cannot be provided, the agency cannot collect on these debts and can be reported.

If you are in any doubt or feel that your rights have been violated in any way, you can involve the Consumer Financial Protection Bureau. 

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