There are some consumer protection Acts that have been put into effect in order to protect all the credit card users from fraudulent activities since 1970s. These Acts have been implemented by the federal government. These federal laws are very useful for all of you in order to protect the personal information, interest rate, charges and other terms related to your finance. This Act has been idenacted to protect the consumers legal rightsid. Here goes an overview of 5 Consumer Credit Protection Acts to help you to get a clear knowledge which will help you to know about the legal terms and to protect your rights as well. Read more to know in details:
idThe Federal Trade Commission or the FTC has formulated the Federal fair Credit Reporting Act (FCRA)id to maintain the privacy and the preciseness of information that is provided in the files of different credit reporting agencies.
Certain aspects that the law is meant to enforce are as follows.
A distressed borrower should get a clear idea of the FDCPA law in order to have a validation of his/her debts. This law idhelps the borrower to defend against the third party collection abusesid. If you think that the debt collector is breaking the law in any way, you can file complaints with the FTC. idThis rule prohibits the collectors from certain bad practicesid such as:
Read more: Fair Debt Collection Practices Act
If you’ve opted and using your credit cards, then it's your responsibility to keep each and every track of your credit record. Thus, you’ll be able to identify the negative listing on your report and can take initiative to remove the errors. Because, negative listing can lower down your credit score. With the help of this act, ida consumer has all the right to talk to the creditors about the negative listings or mistakes in his/her credit record and can make the changes as wellid. Moreover, this act protects a consumer against inaccurate billing charges. The Fair Credit Billing Act limits the consumer's financial liabilities for unauthorized charges to $50 if he/she meets some criteria. Such as:
This act idprotects the consumer from unfair lending practicesid at the time of opting credit cards or loans. Under this act:
This Act idprevents consumers from fake billing and interest rate hikesid. This act is very strong and elaborate in detail. idSome great and active regulations areid as follows:
These are actually few numbers of federal laws which will help you to protect from collection harassment. idEvery responsible credit card users should be aware of these lawsid.