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The Fair Credit Billing Act of 1974, and Your Credit Report

By Brian Anderson
Published: Friday, October 16th, 2009

It is common knowledge that many Americans right now prefer spending by credit rather than cash. In fact, there are just so many commercial establishments that already entertained credit as one way of paying either services or goods bought. In fact, convenience is one of the major reasons why many consumers choose credit cards as their preferred mode of spending. First, they do not have to bring those greenbacks around. Second, they are able to spend without limitations posed by what dollars they only carry. However, this fact also leads to many a problem for consumers. This is overspending. In fact, a lot of credit score tips talk about how to lessen chances of you spending over your capabilities.

Truly, credit reports are one effective piece of information whether you are still financially secure or not. In this case, you can use your credit report to guide you what steps you can actually make for you to have a better financial standing. Many credit score tips actually point to your respective credit reports for reference. However, what if it is your credit report that actually caused your financial problems? The sad fact is, it is actually true. There are several cases in which wrong credit reports have actually caused financial ruin to consumers. That is the reason why it is important for consumers to have a factual and accurate credit report. The last thing that you want to witness is financial ruin just because of inaccuracies and errors in your credit report.

It is a good thing that there is a law that protects consumers from inaccurate and erroneous credit reports. This is the Fair Credit Billing Act of 1974. In fact, before this law was passed by legislators, many powerful credit companies have victimized and have taken advantage of consumers. Due to the absence of this law, many credit reports have been in fact, purposely filled with errors so that these companies would gain bigger profits. However, due to this law, consumers are now protected from this practice. But, there have been still cases wherein wrong credit reports have don damage. One major reason is because most consumers are ignorant of this law. In this case, knowing better this act may prove to be one of the best credit score tips that you can take.

Basically, the Fair Credit Billing Act of 1974 (FCBA) was made to project consumers from undue harm due to errors and inaccuracies in credit reports. The FCBA mandates all concerned credit agencies to ensure that all credit reports must have accurate and factual information on them. Also, in cases of errors in credit reports, the FCBA also mandates these concerned credit agencies to correct those mistakes. Plus, it empowers consumers to challenge credit agencies if they judge that there are problems and inaccuracies in their respective credit reports. So the next time that you have your credit report, be alert for mistakes. Remember that there is a law that protects you. In the end of the day, you may be grateful that you have actually followed these valuable credit score tips.

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