With the many different laws shaping the credit industry, it’s important for consumers to understand at least a little bit about these acts. Certain laws are meant for protection, while others are used to actually give you right. Here’s a quick breakdown of a how some of these laws help you improve your credit score and deal with those pesky debt collectors.
The Fair Credit Reporting Act of 1970 (FCRA)
This law governs the way consumer information is collected, reported and used. It mainly addresses the credit reporting agencies and holds them responsible for reporting accurate information. The FCRA is the act that sets the amount of time debts can stay on your credit, as well.
Fair and Accurate Credit Transactions Act of 2003 (FACTA)
The FACTA was a shake up to the industry and provided consumers with the ability to receive one free credit report per year. This act is also responsible for making merchants truncate debit and credit card numbers on receipts.
The Credit Card Act of 2009
When this act was announced, it shook the industry. It introduced changes to the way interest rates are handled and allows consumers to opt-out. It also helps to keep your interest rates from going up due to your interaction with a different creditor.
The Fair Credit Billing Act of 1974 (FCBA)
This law addresses issues with inaccuracies reported on bills from credit card companies. It requires credit card companies to fix the issues quickly and credit payments.
These are just a few of the many acts and laws in place to protect the consumer. It’s important to understand your rights and by gaining basic knowledge of the acts involved in the financial industry, you will know when a company is acting illegally and what you can do about it.