Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected

Credit Rights: A Consumer’s Essential Armor

By Karen Anderson
Published: Tuesday, November 17th, 2009

There are various credit report tips available that talk about the importance of having a good credit score or understanding a credit report. Although all of these are well and good, there is an even more pressing concern that has to be addressed. The main problem on why consumers are easily scammed, misled, or discriminated against is that they are unaware of their rights. 

Whether applying for credit or loan, correcting errors in our report, or battling against identity theft, knowledge of our rights should be our prime concern. What then are the various rights that we are entitled to? Accordingly, there are several acts and laws that we should be familiar with especially with regards to our credit. 

The first is the FCRA or the Fair Credit Reporting Act. This law’s main function is to promote accuracy, fairness, and privacy of information in our credit file. The FCRA mainly govern the activities of credit bureaus for they are the one responsible in compiling all our financial information. Among our rights as stated in this law is that a limited number of parties can access our file. As we can see, this is an essential advice among credit report tips. By knowing this law, we are ensured that information in our credit report is not misused. 

The Fair and Accurate Credit Transaction Act on the other hand empowers individuals against identity theft. Moreover, it provides individuals with many powerful rights. One of the important credit report tips to keep in mind is that we are entitled to receive a free copy of our credit report once a year. Moreover, when we suspect that we may be a victim of identity theft, we are entitled to receive additional free reports. Another important right provided by this law is that we are able to block any falsified information from appearing in our credit report. 

Another is the Equal Credit Opportunity Act. From its name alone, one could already infer that this law guarantees that all consumers will be given an equal chance to receive credit. Needless to say, this is among the prime credit report tips available to us. When evaluating credit applications, creditors should only base their decisions on factors such as income, expense, debt, and credit history. Thus, when creditors discriminate against us because of our race, sex, or marital status, then they are punishable by law. Discrimination based on national origin, religion or age warrants the same punishment. 

The last law we should be familiar with is the Fair Debt Collections Practices Act. It governs third party collectors and ensures that customers are protected from abusive practices. For instance, collectors are not allowed harass us by making repetitive phone calls. Moreover, they are obligated to protect our privacy and are thus prohibited from revealing or discussing our debt with anyone but us. As we can see, we have various rights that protects our credit rights, knowing these laws are thus among the most vital credit report tips to remember.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.