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What Are the Most Important Credit Laws I Should Know About?

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consumer protected by credit laws

As a consumer, credit rules your life. Whether you want to apply for a new card or buy a home, ensuring your credit score is up to par is crucial. Luckily there are a number of laws enacted to help protect your rights. However, if you aren’t familiar with the laws, you cannot use them to your advantage. The following blog explores the most essential credit laws you should familiarize yourself with and how an Arroyo Grande consumer lawyer can help you if you’ve been victimized by unfair practices.

What Are the Most Significant Credit Laws?

One of the most vital credit laws is the Equal Credit Opportunity Act of 1974. This ensures that no one can be denied credit based on race, gender, ethnicity, sexual orientation, religion, or marital status. Instead, credit companies can only consider an applicant’s financial history and income before denying their application. The only exception to this law is that credit card companies can deny those under 18 from signing legally binding contracts.

Another vital credit law is the Truth in Lending Act. This statute ensures that consumers are fully informed about the full details of their contract before signing. Transparency is essential to ensuring that all consumers understand the full extent of their agreement, making it illegal for companies to hide fees and fines without informing consumers that they exist.

You should also understand your rights under the Fair Debt Collection Practices Act which protects consumers from unfair, abusive, and harassing collection methods. Many lenders do not have the resources to pursue every debtor, so they hire a third-party company. However, these third-party collectors will often use illegal practices like using abusive language, constantly calling outside of the dedicated hours, and speaking to other people about your debt.

While these are not the only laws, they are some of the most important. You should also become familiar with the Fair Credit Reporting Act and the Fair Credit Billing Act, as these protect your rights to a correct credit report and dispute unfair charges.

What Should I Do if My Rights Are Violated?

If you believe your rights are being violated by a credit company, ensuring you contact a lawyer as soon as possible is essential to protecting your credit score. Unfortunately, as your credit score is essential to many different aspects of your life, ensuring you are protected from unfair practices is essential.

When you need help fighting against big companies, contacting Loker Law is essential. Our dedicated legal team understands how confusing these issues can be. Luckily, we have the experience you need to make this process as simple as possible. Contact us today to learn more about how we can help you.

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