Debt Recovery and Credit Protection

Truth In Lending Act

• Debt Recovery Law Tip: Requires disclosure of cost requirements for the APR (annual percentage rate) and the dollar amount of finance charges.

• Debt Recovery Law Tip: Requires loan terms and conditions be disclosed.

• Debt Recovery Law Tip: Regulates how credit terms are advertised.

• Debt Recovery Law Tip: Prohibits sending unrequested credit cards by card issuers.

• Debt Recovery Law Tip: Limits the liability of unauthorized use to $50 per card for the cardholder.

Fair Credit Reporting Act

• Debt Recovery Law Tip: Requires the disclosure of the name and address of any consumer-reporting agency that provides credit reports used to deny credit, insurance or employment.

• Debt Recovery Law Tip: Provides the consumer with the right to know what is in his/her file. Have incorrect information investigated and removed and allows the consumer to include a I 00-word statement in the file explaining the situation.

• Debt Recovery Law Tip: Requires that a consumer, s statement of disputed items be sent by the credit reporting agency to businesses or creditors. 1997 rules require more reporting requirements for stores, banks and credit agencies.

• Debt Recovery Law Tip: Requires identification of consumers wishing to inspect their credit file.

• Debt Recovery Law Tip: Requires when an investigation or information request is made of a credit file, the consumer be notified.

• Debt Recovery Law Tip: Limits the length of time credit information may be maintained in a file.

• Debt Recovery Law Tip: Establishes procedures debt collectors must use in contacting the debtor/credit user.

• Debt Recovery Law Tip: Limits contracts with a third party by debt collectors.

• Debt Recovery Law Tip: Establishes how a payment on several debts is applied and that no monies are applied to a debt in dispute.

Fair Credit Billing Act

• Debt Recovery Law Tip: Establishes procedures to be followed when billing errors occur on revolving credit statements.

• Debt Recovery Law Tip: Requires creditors to send to consumers a periodic statement, which outlines billing error procedures.

• Debt Recovery Law Tip: Allows consumers to withhold credit card payments for faulty goods or services when purchased with a credit card. You must have made the purchase within 100 miles of your home and the item cost more than $50.

• Debt Recovery Law Tip: Requires creditors to credit the customer's account promptly and to return overpayments, if requested.

Equal Credit Opportunity Act

• Debt Recovery Law Tip: Prohibits creditors from discrimination against credit applicants based on sex, race, marital status, national origin, religion, age or the receipt of public assistance.

• Debt Recovery Law Tip: Prohibits the re-application for credit upon change of marital status.

• Debt Recovery Law Tip: Requires creditors to contact applicants within 30 days of receiving a completed application within notification of rejection or acceptance.

• Debt Recovery Law Tip: Requires creditors to report credit card payment histories on both the names of husband and wife, if both use and are liable for the account.

Fair Debt Collection Practices Act

• Debt Recovery Law Tip: Prohibits debt collectors from using abusive, deceptive, and unfair collection practices.

• Debt Recovery Law Tip: Prohibits the re-application for credit upon change of marital status.

• Debt Recovery Law Tip: Requires creditors to contact applicants within 30 days of receiving a completed application with notification of rejection or acceptance.

• Debt Recovery Law Tip: Requires creditors to report credit card payment histories on both the names of husband and wife, if both use and are liable for the account.

The federal Fair Credit Reporting Act (FCRA) is designed to promote accuracy, fairness, and privacy of information in the files of every "consumer reporting agency" (CRA). Most CRAs are credit bureaus that gather and sell information about you-such as if you pay your bills on time or have filed bankruptcy-to creditors, employers, landlords, and other businesses. You can find the complete text of the FCRA, 15 U.S.C. 1681-1681u, at the Federal Trade Commission's web site. The FCRA gives you specific rights, as outlined below. You may have additional rights under state law. You may contact a state or local consumer protection agency or a state attorney general to learn those rights.

You must be told if information in your file has been used against you. Anyone who uses information from a CRA to take action against you-such as denying an application for credit, insurance or employment-must tell you, and give you the name, address, and phone number of the CRA that provided the consumer report.

You can find out what is in your file. At your request, a CRA must give you the information in your file, and a list of everyone who has requested it recently. There is no charge for the report if a person has taken action against you because of information supplied by the CRA, if you request the report within 60 days of receiving notice of the action. You also are entitled to one free report every twelve months if you certify that (1) you are unemployed and plan to seek employment within 60 days, (2) you are on welfare, or (3) your report is inaccurate due to fraud. Otherwise, a CRA may charge you up to eight dollars.

You can dispute inaccurate information with the CRA. If you tell a CRA that your file contains inaccurate information, the CRA must investigate the items (usually within 30 days) by presenting to its information source all relevant evidence you submit, unless your dispute is frivolous. The source must review your evidence and report its finding to the CRA. (The source also must advise national CRAs-to which it has provided data-of any error.) The CRA must give you a written report of the investigation, and a copy of your report if the investigation results in any change. If the CRA's investigation does not resolve the dispute, you may add a brief statement to your file. The CRA must normally include a summary of your statement in future reports. If an item is deleted or a dispute statement is filed, you may ask that anyone who has recently received your report may be notified of the change.

Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information for its files, usually within 30 days after you dispute it. However, the CRA is not required to remove accurate data from your file unless it is outdated (as described below) or cannot be verified. If your dispute results in any change to your report, the CRA cannot reinsert into your file a disputed item unless the information source verifies its accuracy and completeness. In addition, the CRA must give you a written notice telling you it has reinserted the item. The notice must include the name, address and phone number of the information source.

You can dispute inaccurate items with the source of the information. If you tell anyone-such as a creditor who reports to a CRA-that you dispute an item, they may not then report the information to a CRA without including a notice of your dispute. In addition, once you've notified the source of the error in writing, it may not continue to report the information if it is, in fact, an error.

Outdated information may not be reported. In most cases, a CRA may not report negative information that is more than seven years old; ten years for bankruptcies.

Access to your file is limited. A CRA may provide information about you only to people with a need recognized by the FCRA-usually to consider an application with a creditor, insurer, employer, landlord, or other business.

Your consent is required for reports that are provided to employers, or reports that contain medical information. A CRA may not give out information about you to your employer, or prospective employer, without your written consent. A CRA may not report medical information about you to creditors, insurers, or employers without your permission.

You may choose to exclude your name from CRA lists for unsolicited credit and insurance offers. Creditors and insurers may use file information as the basis for sending you unsolicited offers of credit or insurance. Such offers must include a toll-free pone number for your to call if you want your name and address removed from future lists. If you call, you must be kept off the lists for two years. If you request, complete, and return the CRA form provided for this purpose, you must be taken off the lists indefinitely.

You may seek damages from violators. If a CRA, a user or (in some cases) a provider of CRA data, violates the FCRA, you may sue them in state or federal court.

The FCRA gives several different federal agencies authority to enforce the FCRA:

For questions or concerns regarding:	Please contact:
CRAs, creditors and others not listed below	Federal Trade Commission Consumer Response Center - FCRA Washington, DC 20580 *(202) 613-3761
National banks, federal branches/agencies of foreign banks (word "National" or initials "N.A." appear in or after the banks name)	Office of the Controller of the Currency Compliance Management, Mail Stop 6-6 Washington, DC 20219 *(800) 613-6743
Federal Reserve System member banks (except national banks, and federal branches/agencies of foreign banks)	Federal Reserve Board Division of Consumer & Community Affairs Washington, DC 20551 *(202) 452-3693
Savings associations and federally chartered savings banks (word "Federal" or initials "F.S.B." appear in federal institution's name)	Office of Thrift Supervision Consumer Programs Washington, DC 20552 *(800) 842-6929
Federal credit unions (words "Federal Credit Union" appear in institution's name)	National Credit Union Administration 1775 Duke Street Alexandria, VA 22314 *(703) 518-6360
State-chartered banks that are not members of the Federal Reserve System	Federal Deposit Insurance Corporation Division of Compliance & Consumer Affairs Washington, DC 20429 *(800) 934-FDIC
Air, surface, or rail common carriers regulated by former Civil Aeronautics Board or Interstate Commerce Commission	Department of Transportation Office of Financial Management Washington, DC 20590 *(202) 366-1306
Activities subject to the Packers and Stockyards Act, 1921	Department of Agriculture Office of the Deputy Administrator-GIPSA Washington, DC 20250 *(202) 720-7051