A credit report gives an insight into the creditworthiness of a consumer. A credit report rating determines whether or not an individual is eligible for borrowing money. If the credit report is negative, the score also affects an individual’s chances of renting premises, getting employment. There are certain rights regarding credit report, which are enjoyed by the consumers.
These rights regarding credit report have been implemented to prevent borrowers from being siphoned into fraudulent practices.
Given below is a list credit report law protecting consumers:
The following rights regarding credit report safeguard borrowers.
Fair Debt Collection Practices Act
Fair Credit Billing Act
Fair Credit Reporting Act
Equal Credit Opportunity Act.
Fair Debt Collection Practices Act:
This protects a consumer from being subjected to scornful, unfair as well as misleading behavior of the individuals collecting debt from the consumers.
This is one of the many rights regarding credit report, which is applicable to the professionals collecting debts. These professionals are individuals, who did not initiate the process of loan, but are entrusted with the work of collecting the debt amount. This credit report law is not applicable in the case of departmental stores, banking institution. As per this credit report law, the ones collecting the debt are permitted to contact people only to know the whereabouts of the debtor.
The collector under this credit report law is not allowed to:
Harass the debtor
Use threats or bad language
Make calls, which are anonymous.
Disclose to others, the debt status
In the event, when the individuals collecting debt do not abide by the credit report law, the consumer has the right to initiate legal proceedings against the debt collector.
Fair Credit Billing Act:
Rights regarding credit report, enjoyed by the consumers under this credit report law envisages that any error pertaining to open end credit accounts need to be rectified promptly. According to this law, if a charge is disputed by the consumer with regard to different open end credit tools, the consumer’s account cannot be reported as delinquent. The different open end credit tools are charge accounts, credit cards, checking overdrafts.
Fair Credit Reporting Act:
This credit report law ensures information privacy of the credit reports of consumers. It also looks into the accuracy of the credit report of the consumers.
It governs the proper usage of credit reports. It also directs the consumer reporting agencies or the credit bureaus to maintain files, which are complete as well as accurate. This credit report law allows a consumer to review the credit report and to rectify any error in the report furnishing incorrect information about the consumer.
Any credit bureau or CRA ( consumer reporting agencies), violating the law is liable to be prosecuted in the court of law.
Equal Credit Opportunity Act:
According to this Act, individual creditors are required to apply fairly, the different credit standards. This is done to ensure that all the consumers enjoy equal opportunities to avail credit. This law does not assure of guaranteed loan application approval. It also does not require that the same standards be maintained by all creditors.