Protecting Your Credit

1
Section 6.3

• Protecting Your Credit

2
Billing Errors and Disputes

• Notify your creditor in writing
• Pay the portion of the bill that is not in
  question
• The creditor must acknowledge your letter (30
  days)
• They must adjust your account or tell you why the
  bill is correct (no longer than 90days)
• If no mistake is found they must promptly send
  you a new bill with what you owe and any charge
  you missed while you were questioning the bill

3
Protecting you Credit Rating

• According to law
• A creditor may not threaten your credit rating or
  do anything to damage your credit reputation
  while you are disputing your bill
• Your creditor may not take action to collect
  until your complain has been answered.

4
Credit and Stolen Identity

• Identity theft When someone else uses your
  personal information for their own purposes
• Figure 6.8 (3 steps)
• Contact the credit bureaus
• Contact the creditors
• File a police report

5
Protecting your credit from theft or loss

• Tear or shred any papers that contain personal
  information
• Close accounts immediately
• Place Stop payments
• Cancel cards
• Be sure your card is returned after you make a
  purchase
• Keep a record of your card number separate from
  your card.

6
Keeping Track of Your Credit

• You may not know your information has been stolen
  until you notice something is wrong
• When you open new accounts after identity theft
  make sure the accounts are password protected
  only
• Keep a close eye on new instances of identity
  theft and notify the creditor immediately

7
Government Protection

• Privacy Rights Clearinghouse of the Federal Trade
  Commission (FTC) provides information on how to
  network with other victims
• The U.S Secret Service has jurisdiction over
  financial fraud cases
• The Social Security Administration may administer
  you a new social security number
• You can file complaints with the FTC by a
  consumer helpline, the mail, or the internet.

8
Protecting Your Credit Information on the
Internet

• Use a secure browser
• Keep records of your online transactions
• Review your monthly statements
• Read the privacy policy of the website you visit
• Keep your personal information private
• Never give your password to anyone online
• Do Not download files sent you by strangers

9
Cosigning a Loan

• Think Twice about cosigning on a loan
• This means you are legally responsible for the
  loan payments if the other person does not make
  them
• The lender would not require a cosigner unless
  they thought the person was considered a risk
• If neither of you repay the loan this will show
  on your credit history

10
Complaining about consumer Credit

• There are formal complaint procedures if you
  cannot work out something with the lender
• You can get help from the Federal Reserve System
• You may take legal action against creditor, but
  if you decide to file a lawsuit you should be
  aware of the consumer credit protection laws

11
Consumer Credit Protection LawsDescriptions on
page 183-184

• Truth in Lending and Consumer Leasing Acts
• Equal Credit Opportunity Act
• Fair Credit Opportunity Act
• Fair Credit Reporting Act
• Consumer Credit Reporting Reform Act

12
Your Rights under Consumer Credit Laws

• If you believe the your have been refuse credit
  because of discrimination you can
• 1. Complain to the creditor. Let the creditor
  know that you are aware of the law
• 2. File a complain with the government Figure 6.9
• 3. If all else fails you can sue the creditor