Credit Card Laws Can Save Your Hide
Although it may not seem like it sometimes, there are laws
governing the issuance and denial of unsecured credit (for example,
credit cards). It isn’t a bad idea to bone up on a few
credit card laws before you ever venture into the world of
credit cards, just to know your rights and their rights, and to be
clear on what you are about to get yourself into. A list of basic
laws pertaining to credit cards can be found at:
http://www.cardreport.com/laws/credit-laws.html
A good summary of the Consumer Credit Protection Act of 1968, as
well as a lot of other good supplemental material is also available
from the Federal Reserve at:
http://www.federalreserve.gov/pubs/consumerhdbk/
The Consumer Credit Protection Act of 1968 required for the first
time that credit card companies spell out the terms and conditions
of issuing credit in a common language so that borrowers could
understand what the actual charges were, compare costs, and shop for
the best deal.
Many other credit protections have been set up since that
landmark law was passed. Some of the current laws in place, for
example, state:
- that you cannot be denied a credit card just
because you're a single woman
- that you can limit your risk if a credit card is
lost or stolen
- that you can resolve errors in your monthly bill
without damage to your credit rating and
- that you cannot have credit shut off just because
you've reached age 62
Just because a law is in place doesn’t mean that lenders won’t do
everything they can to circumvent the law, or that lenders will not
break the law outright.
Knowing the laws and your rights as a consumer is only a first
step. In addition to that, it is your responsibility to carefully
read over all credit agreements and terms before signing anything or
submitting any application, and if you feel that after all of that
you have been defrauded, you have to take the steps necessary to
press your case in court. This can be so difficult as to be almost a
second form of punishment.
It is far easier to beware of any credit agreement and use
unsecured credit sparsely and responsibly. If you find that a lender
is behaving in an unscrupulous manner, report the lender and then
close your account. If you are unable to close your account because
of a disputed balance or any other reason, seek legal assistance and
do what you have to do.
Keep your credit card lending agreement (the boring little
pamphlet you get in the mail after you get your card that almost no
one ever reads or keep) and file any dispute the minute you become
aware of it according to the procedure outlined in the agreement.
Keep copies of all correspondence with the credit card company and
notarize your correspondence if possible, using return receipts to
insure they did get your dispute.
Laws are on the books to protect you, but the best protection
ultimately is, “Buyer beware.”
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