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• Consumer Credit Rights
• Fair Debt Collections
• Credit Reports
• Obtaining Your Credit Report
• How to Use Your Credit Report
• Further Information

Truth in Lending Act - Requires all credit grantors to provide you with the annual percentage rate (APR) of any loan prior to signing. APR reflects the true cost of the credit.

Equal Credit Opportunity Act - Prohibits discrimination against you because of age, sex, marital status, race, color, religion, national origin or receipt of public assistance.

Fair Credit Billing Act - Allows for the prompt correction of errors on a credit account and prevents damage to your credit record while you are settling disputes.

Fair Credit Reporting Act - Protects consumers from incorrect credit reporting to credit bureaus. Allows for privacy. Permits the consumer to put a written explanation limited statement in their credit report. Provides for removal of outdated in formation after 7 years (bankruptcy after 10 years). Credit reporting agency subscribers comprised of banks and merchants, etc., may not access an individual's credit record unless authorized. This authorization is standard procedure when you sign credit and loan applications, life insurance applications, employment applications, security clearance requests, etc. Read the fine print on the applications for more details.

Fair Debt Collection Practices Act - Prohibits debt collection agencies from abusive collection practices. Allows consumers to dispute a debt and to stop any unreasonable collection activities such as: calling before 8AM or after 9PM, harassment (vs. strong collection tactics), false statements, threatening action that isn't permissible, and unfair practices.
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The Fair Debt Collection Practices Act is a federal law that prohibits a debt collector from disclosing what you owe to anyone but your attorney. This law also protects consumers from harassment or threats made by creditors and prohibits creditors from making false statements.

When an account is considered uncollectable, a creditor will write it off as a bad debt or "charge off." Depending on each creditor's policy, a charge off will occur between 90 to 180 days after you become delinquent. However, a creditor can still pursue collection of the debt and it will also be reported to the credit bureaus.

If your car was repossessed and resold you are liable for the difference between what the car sold for and what was owed. If not paid, the creditor may initiate legal action for the difference between the sale price of the car and what you owed.

To attach your wages or put a lien on your property, most creditors need a court judgment. A judgment is a decision issued by the court at the end of a lawsuit. If you are sued and either don't file papers or file papers but eventually lose the case, the person who sued you will get a judgment.

When your wages are attached or garnished, a sum of money is deducted from your paycheck and sent to the creditor. Wage attachments are a common method used to collect a court judgment or back-owed child support.

You will need to talk to an attorney about who is responsible for debts after divorce.
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A credit report is a picture of your credit, debt and payment history. When you apply for credit such as a credit card or a loan, this is reported to one of the major credit bureaus and a file is established in your name. Your credit file will document: credit inquiries made on your file by credit providers, employers, insurance companies and government agencies (usually within the past two years), public record information such as courthouse records, bankruptcies, monetary judgments and tax liens, credit history including the name of each creditor that you have an account with, and your payment history, consumer statements made by you as explanation of a negative item up to 100 words.

Your credit report usually includes personal information, employment information, a list of creditors, payment history, any bankruptcies or lawsuits, and any inquiries made about your credit history. We recommend that you get a copy of your credit report from each of the three major credit reporting agencies -- Experian, Trans Union, and Equifax -- once a year to make sure the information is accurate.
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To get a copy of your credit report, you must provide the following in writing:

• Full name, including any maiden name
• Current address
• Previous address (if needed for five-year credit history)
• Daytime telephone number
• Social Security number
• Date of birth
• Copy of Driver's license (or utility bill to prove address)
• Signature
• Fee

Call each agency before sending this information to be sure they do not need any additional information.

There are three main credit-reporting agencies. Each has their own report and they do not exchange information. You should look at your file at all three agencies at least once every two years to make sure they contain accurate information.

Experian (formerly TRW) will provide your credit report for an $8.00 fee. Write to:

Experian
National Consumer Assistance Center
P.O. Box 2104
Allen, TX 75013-2104
Or call 1-800-682-7654.

Trans Union charges $8.00 per report. Write to:

Trans Union Corporation
National Disclosure Center
P.O. Box 390
Springfield, PA 19064-0390
Or call 1-800-888-4213 or call (800) 916-8800 if you were denied credit recently

Equifax charges $8.00 per report. Write to:

Equifax
Credit Information Services
P.O. Box 105873
Atlanta, GA 30348
Or call 1-800-685-1111.

If you are a resident of Georgia, Massachusetts, Maryland, Vermont, or Colorado or have been denied credit or employment or insurance in the past 60 days due to the credit report, you should be able to get a complimentary copy of your credit report from the credit bureau that was used in the denial. If you have been denied credit, you may ask what credit bureau supplied your credit history and call them within 60 days to get a free credit report.
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If the negative information is true, you can pay any balances so that records show the account is paid. But you'll still have to wait -- most information stays on your credit record for seven years (ten for some bankruptcies).

If the information is incorrect, you can fill out a dispute form from the credit bureau or write your own request for an investigation of any inaccurate information. The credit bureau has 30 days to correct the information, delete the information, or report to you why the information is correct. If you dispute the information, credit bureaus will add a short statement from you to your report that explains why you feel the information is incorrect. If the information is deleted, you may request that new information be sent to any potential employer who has received a credit report during the past two years or anyone who has requested credit information in the past six months.

You should be wary of organizations that say they can "clean up your credit history." For a fee, these companies promise to clean up your credit report so that you can get a car loan, a home mortgage, insurance, or even a job. After you pay them hundreds or thousands of dollars in fees up front, these companies do nothing to improve your credit report -- and many simply vanish with your money. The truth is, no one can legally remove accurate and timely negative information from a credit report. Beware of companies that:

• Want you to pay for credit repair services before any services are provided.
• Don't tell you your legal rights and what you can do yourself for free.
• Recommend that you do not contact a credit bureau directly.
• Advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
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****The foregoing is not intended as an exhaustive review of law concerning credit repair and debt collections. This information is not to be regarded as legal opinion applicable to all circumstances. Each factual scenario is different and requires unique and individual advice. The information provided herein should not be relied upon and any person with inquiry or concern should consult an attorney.

FURTHER INFORMATION

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If you'd like help in credit counseling, contact CCCS, the Consumer Credit Counseling Service at [http://www.cccssoutheast.org] or the National Foundation for Consumer Credit at [http://www.nfcc.org] or call 1-800-388-2227 for information and help. You can enter either of URLs at your browser if you are ready to leave Cafe Law. You do not have face credit problems alone, but you do not have to get ripped off either. These are non-profit organizations here to help.

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