What Are The Most Important Credit Laws That Protect My Rights?

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As a consumer, federal law is on your side. There are many acts established to help ensure that businesses cannot take advantage of their clients. As managing your credit is essential to many aspects of American life, understanding the laws set in place to protect you is essential. With so much information surrounding consumer rights, understanding what these laws say can help you stay vigilant when protecting your credit. The following blog explores some of the most vital credit laws enacted to protect consumers and discusses how a California consumer lawyer can help fight against businesses that violate these laws.

What Credit Laws Should I Know About?

By far, one of the most essential credit laws that all consumers should know about is the Equal Credit Opportunity Act. This prohibits creditors from discriminating against applicants due to their race, gender, ethnicity, age, or marital status. The only exception is that credit card companies are allowed to deny minors from obtaining a credit card. The only factors that creditors can consider before denying an applicant are their credit history and financial status.

Another essential act consumers should know about is the Truth in Lending Act. This statute ensures transparency when a consumer agrees to credit transactions, as businesses must disclose all terms and regulations. This includes interest rates, due takes, late fees, and monthly payments. Transparency helps consumers avoid surprise fees, interest rates, or higher monthly rates than they were expecting.

The Fair Debt Collection Practices Act helps protect consumers from abusive and unfair tactics used by third-party collectors. Generally, businesses and lenders do not have the time to go after those who owe money, so they will hire a third party to collect the debt. However, many collectors use violent or vulgar methods to harass and intimidate debtors. This act makes it unlawful to use these methods among other practices like reporting the incorrect balance, trying to collect more than what is owed, or speaking to anyone else about the debtor.

It is also critical to familiarize yourself with the Fair Credit Billing Act and the Fair Credit Reporting Act, which allow consumers the right to challenge mistakes or inaccuracies on their credit accounts and protect them from the purposeful manipulation of the information on a credit report.

What Should I Do if My Rights Are Violated in California?

If you believe your rights are being violated despite these laws, you’ll want to contact an attorney as soon as possible. Credit companies use confusing language to take advantage of unknowing consumers. However, if they make an error, understanding that you don’t have to settle for unfair practices is essential.

At LA Legal Solutions, we understand that it can be intimidating to fight against big companies. Our dedicated legal team is not afraid to stand up to lenders to fight for your rights. Contact us today to learn how we can help you.

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