As a consumer, under the law, you are protected in matters
regarding billing errors, defective products, interest rate
on loans, lost or stolen credit cards, and leasing a
personal property, such as cars, appliances for over 4
months. These laws and regulations are meant to protect
your credit and save you money.
However, you must not only be knowledgeable about these
laws and regulations, but also know how to apply them to
your advantage.
The Fair Credit Billing Act protects you when you charge a
credit card, credit line, or revolving charge account. It
protects you against billing errors, defective goods or
service. But you must know how to act accordingly in your
best interest.
Send a written complaint to your creditor immediately
(within 60 days), and include your name, account number,
the item(s) in dispute, and the reasons why you think there
is an error. Send it to the appropriate department or
address.
However, you must continue to pay your bill while under
dispute. Remember, the creditor cannot initiate any
collection procedure against you; nor can the creditor send
the disputed amount as delinquent to the credit bureaus.
You may use this to buy more time to settle or bring your
account current.
By law, the creditor must acknowledge your letter within 30
days of receipt.
If the creditor is correct and present you with copies of
related documents, you must pay the bill or the amount
owed. But if you think you still have a case, write within
10 days of receiving the disputed explanation.
The Fair Credit Billing Act requires all cards issuers to
mail their statements to customers at least 2 weeks before
payment is due, and credit payments may begin the date they
arrive, but not before. The law also requires all refunds
to be paid within 7 days after receiving a written request.
If you lose a credit card, you are liable to only $50, even
if you don't promptly notify your credit card issuer. This
is also your right as a credit card consumer.
The Truth in Lending Act ensures that the lenders must
disclose the terms of the loan you are applying for,
including the financial charge, the APR (which is the
annual percentage cost of the loan on a yearly bases, that
is, if the APR is 18 percent, you will be paying an
interest of 1.5 percent of the loan a month), and any fees
associated with the loan. If you receive several
preapproved credit cards, always choose the one with the
lowest APR and the lowest annual fee or no annual fee to
save you money. Always read the fine print, and ask if you
have any question.
By law, you can change your mind about getting a loan, and
generally you have about 3 days to do so.
The Equal Credit Opportunity Act requires that you will be
notified, within 30 days of application, the approval or
denial of a loan to you. Any denial must be in writing with
specific reasons. According to the law, you cannot be
denied based on sex, race, marital status, religion,
national origin, age, receiving welfare, or unavailability
of credit insurance.
The Consumer Leasing Act is applicable to leasing for
personal property for longer than 4 months (this does not
apply to short-term car rental). The leaser has to provide
you with the cost and terms of the lease in the form of
written disclosures, such as the total cost of leasing,
registration fee, taxes, maintenance and insurance, and,
most important, the standards of wear and tear, such that
any future dispute can be avoided, and, if not, at least
resolved satisfactorily.
Review your state's laws regarding collections, and the
federal Fair Debt Collection Practice Act to familiarize
yourself with your rights as a consumer. When a collector
knows you are knowledgeable, he or she cannot and will not
intimidate you.
Always be knowledgeable of the law and your rights as a
consumer. This will protect your credit and save you money.
----------------------------------------------------
Stephen Lau is a researcher and writer of medical research
for doctors and scientists worldwide. His several
publications include "NO MIRACLE CURES" a book on healing
and wellness, and "HOW TO TEACH CHILDREN TO READ" a book on
reading strategies. He has also created several websites on
health, golf, Zen living, mental depression, and money
management, including the following:
http://www.smartcreditsmartmoney.com
http://www.nomiraclecures.com
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