Independent work credit

LAWS

Truth in Lending Act - 1968 (Consumer Credit Protection Act)

Requires the credit card issuing company to disclose to the consumer:

• APR that will be charged
• How the APR is determined if it is a variable rate
• The method for computing the balance at the end of the month
• The annual fee that will be charged
• The amount of the minimum finance charge
• Transaction fee for purchases

It covers four major areas:

• It requires lenders and merchants to fully disclose in writing the total cost of using their credit.
• It requires lenders and merchants to be truthful in their advertising about the cost of using their credit.
• It gives consumers the right to cancel credit within three business days on certain types of credit.
• It limits the liability of a credit card holder to $50 per card in case of unauthorized use.

The Fair Credit Reporting Act 1971

• Is designed to provide access to personal credit information on file with credit bureaus.
• Requires the credit bureau to investment errors and correct the report.
• Borrower’s have 30 days to review their file without charge if they are denied credit.
• For a fee of approximately $10, they can review their file at any time.

Fair Credit Collection Practices Act

Protects you from the harassment of creditors. The debt collector is not allowed to:

• Use abusive language with you
• Call at unreasonable hours or an excessive number of times
• Threaten to notify your employer
• Attempt to collect more than you owe
• Send you misleading letters that appear to be from a government agency or a court of law

Top Ten Questions to Ask Yourself Before You Sign on the Dotted Line

• Do I really need this item right now or can I wait?
• Can I qualify for credit?
• What is the interest rate (APR)?
• Are there additional fees?
• How much is the monthly payment and when is it due?