Consumer Credit Protection

Consumer Credit Protection

All Agencies aren't the same

How to get help

But it's not just credit cards...

Credit Problems are not just for the young...

Facts about credit Misuse

You can get help from several places.

Employers, unions, credit unions and banks may have people who provide free budget and credit advice.

There are also several non-profit credit counseling agencies that provide face to face, telephone and online counseling. The Money School of Delaware is an example.

• People of all ages can face financial problems.
• An unexpected illness, the loss of a job, a divorce, the loss of child care - all of these things can tip a household into financial trouble.

If you need to work with a credit counseling agency, make sure you:

• check their qualifications.
• Ask what services are offered and what are the cost.
• make sure the agency will do a full budget review before enrolling you into a debt-management plan.
• Do you pay anything before you are helped?
• Are there on-going monthly fees?
• Does the agency provide educational materials?
• can you get these on-line?

• People try to live beyond their means
• Among you people, excessive credit card debt is a common problem.
• So are high monthly payments for other things like car loans and rent.
• Because people are too busy spending money they don't have, they are not saving it either.
• For young couples, financial problems are often a troublesome factor that contributes to break-ups and divorce.

• Young adults today have easy access to credit
• 3/4 of undergrad college graduates in 2008 had credit cards
• The average balance on those cards were $2,200.00
• In addition to the credit cards, many of these students also had at least $20,000.00 in student loans to pay off.

Fair Credit Reporting Act

Getting help

The Truth in Lending act

Not everyone is out to get you...

This govern activities of credit bureaus. They are required to furnish accurate and complete info to creditors regarding your credit history. If you are denied a loan, you are given the right to see your credit report file from the bureau that submitted the negative info on you. If you disagree with something your report, the bureau must investigate. this law also says that only people with a legitimate business purpose can look at your report.

Some credit agencies help people pay off their debt with consolidation. This means all of the client's debt is consolidated into a lump sum, and the client pays one monthly payment on that sum to the credit agency. The agency makes sure the creditors then get their money. Sometimes, they can get lower rates and fees waived for their clients. Before you pick one, you might wanna ask:

• How is your payment determined
• How does your debt repayment work?
• How will you know your creditors are receiving payments?
• Can the agency get your creditors to lower rates and/or waive fees?
• Are their alternatives to the debt-repayment plan?
• What happens if you can't keep up with the agreed upon plan?

There are several Federal Laws that are put in place to help consumers.

You're gonna wanna know about these for the test and the final!

It requires that lenders disclose the cost of credit in simple terms. The interest rate must be expressed in APR. They must also tell you how much interest you will pay out for the life of the loan. It also has a clause for unauthorized use of credit cards. if your card is lost or stolen, you are liable for no more than $50 in charges made by someone else. You are also not liable for any charges made on the card after you've notified the card company.

Fair and accurate credit transactions act

This is an amendment to the FCRA that allows you a free annual copy from each of the three credit bureaus.

www.annualcreditreport.com

Equal Credit Opportunity Act

Electronic Funds Transfer Act

Fair Debt Collection Practices Act

Fair Credit Billing Act

Fair and Accurate Credit Transactions Act

Creditors are required to mail your bill at least 14 days before it is due. It also establishes procedures for correcting billing errors and fraudulent charges on your credit card accounts.

This forbids collection agencies from using threats, harassment, or abuse to collect debts. This Act does not apply to creditors who are collecting their own debts

All consumers will be given an equal chance to get credit. you cannot be denied b/c of sex, martial status, race, national origin, religion, age, or because the applicant receives public assistance.

Provides protection against identity theft. it places alerts on credit histories if identity theft is suspected. It also reduces theft by limiting the amount of account info on receipts.

This provides protection for ATM and debit cards if they are lost or stolen. How quickly you report the loss determines what you are liable for. if it's within 2 days? your losses are limited at $50. up to 60 days your limit is $500. If you wait longer than 60 days, it sucks to be you.

Partner Paper!

Who can help you?

Partner Paper

5. What levels of government offer consumer protection ? Why do you think this is so?

There are several state and federal laws that protect consumers of credit from dishonest business practices. State laws vary from state to state, so you might wanna contact the states bureaus to see who controls what. The better business bureau is always a good starting place.

4. Identify two questions that you should ask before entering into an agreement with a credit-counseling agency? Why are these two questions so important to ask?

1. Why are credit problems so common amongst young people?

2. What are some common cause of credit problems amongst people in other age groups? Why would this cause a credit problem?

3. Where can these people get help from?