Protect Your Rights As A Debtor
Dear Client:

Lawyers United for Debt Relief will continue to do what is necessary to protect your rights as a debtor. These rights are protected by federal and state laws. When necessary, we are prepared to bring a law suit on a contingent fee basis to recover damages from creditors and collection agencies who violate the law.

Following is a description of some of the laws which protect your rights.

YOUR TRUTH IN LENDING RIGHTS

The truth in Lending Act requires creditors to provide you with accurate and complete credit costs and terms.

Creditors must disclose credit terms and information:

In a clear and conspicuous manner.
In a form you can keep.

For every credit transaction, the creditor must tell you:

The FINANCE CHARGE -- the cost of credit as a dollar amount.
The ANNUAL PERCENTAGE RATE -- the cost of credit as a yearly rate.

The annual percentage rate, in most cases, is accurate if it is no more than one-eighth of one percentage point above or below the actual rate.

For a loan with fixed term, a creditor must tell you:

Amount financed.
Payment schedule.
Total dollar amount of payments.
Total sale price, including down payment, if creditor is also the seller.
Any property which the creditor can take if you do not pay on time.
0ther terms and conditions of the loan.

When a creditor invites a consumer to submit an application for its credit card or charge account by direct mail application or by telephone solicitation, take-one" display rack, magazines or catalog, the creditor must disclose the following information to you:

Annual percentage rates applicable to extensions of credit by the issuer applied within the past 30 days.
Annual fee, other periodic fee or membership fees.
Minimum finance charges imposed.
Transaction fee charged for purchases.
Grace period for repayment before the assessment of a finance charge.

Balance calculation method for purchases.
Any additional fees imposed for cash advances, late payments or fees imposed on credit extensions beyond the customer's credit limit.

Before you use a charge account or credit card, a creditor must tell you:

The cost of credit as a monthly or daily rate.
When and how interest will be charged to the account.
Service charge or annual fee, if any.
Any property which the creditor can take if you do not pay on time.
Statement of your billing rights.
0ther terms and conditions of the credit.

The creditor must end statements on all credit accounts which have a debit or credit balance at the end of the billing cycle. These statement. include:

Previous balance.
Credits and debits in that month.
Periodic rate and corresponding annual percentage rate.
Finance charges imposed in that month.
New balance.
Explanation of how new balance was determined.

If your account is not a variable rate type account and the annual percentage rate increases or other terms of a credit account change, the creditor must notify you at least 15 days before the effective date.

If an advertisement for credit contains specific terms (i.e., down payment, interest rate), it must state:

0nly those terms which a typical consumer could actually receive.
0ther important information in order to avoid misleading you.

If you place your home as security in a credit transaction:

The creditor must notify you in writing that you have a right to cancel.
You have three business days to cancel the transaction if you wish.
No money can be paid, no services performed or materials delivered during those three business days.
If you do cancel, the creditor must release the security interest and return all money or property received.

This right of cancellation does not apply to a first mortgage to finance the purchase of a home or if you voluntarily waive this right.

YOUR FAIR CREDIT REPORTING RIGHTS

Whenever you are denied consumer credit at least in part because of information in a credit report, you must be given:

The name and address of the credit bureau that provided the information. The reason for denial or information on your right to request the reason for denial. (Required under the Equal Credit Opportunely Act).

If you contact the credit bureau, it must:

Let you know the nature and substance of all information contained in a credit report (except medical information).
Inform you of the sources of information (except for investigative consumer reports).
Provide you with the names of employers, creditors and others who have recently received reports.
You cannot be billed or forced to pay the disputed amount until the creditor has finished its investigation.
Creditor must indicate on its statement that you need not pay any amount in dispute.
It is determined that you do owe the bill, you must be given the usual time to pay the bill.
If there was an error in your bill, you need not pay any finance charges on the disputed amount.
If it is determined that there was no error, you must pay the finance charges.
Your credit history is protected during the dispute process. Creditor may not report you as delinquent to a credit bureau while the error is being investigated.
If it is determined that there was no error, and you disagree with the finding, the creditor can report you as delinquent but must also report that the item is "in dispute."
When the matter is settled, the creditor must report the outcome to the credit bureau and anyone else who received reports of the dispute.
A credit balance in your account must be refunded promptly.
A creditor must refund a credit balance within 7 business days if you request it in writing.
A creditor must refund (by cash, check or money order) any credit balance remaining in your account for more than 6 months.

YOUR CREDIT CARD RIGHTS

There are special rules which protect you when receiving and using a credit card.

A creditor cannot send you a card which you have not requested.
A creditor may send a replacement or renewal card.
If your creditor card is lost or stolen:
You pay nothing on unauthorized charges if you notify the creditor before any charges are made.
You must pay the first $50 charged if you fail to notify the creditor before the charges are made.
You have no liability if you haven't "accepted" the credit card.

Thirty days prior to the renewal date of a credit card or charge account that is subject to an annual fee, membership fee or other periodic charges, the creditor must disclose the following information to you:

Terms that would be in effect upon renewal of the account, including:
annual percentage rate
fees for issuance or availability
Reinvestigate within a reasonable time any information you dispute

If information contained in a credit report is: Inaccurate or cannot be verified, it must be corrected or deleted
Disputed and the dispute be resolved, the credit bureau must allow you to write a brief statement of dispute and include it in all future reports unless the credit bureau determines that it is irrelevant or frivolous.

If any deletion or notification is made regarding the information, you may request that the new information be sent to:

Creditors who are considering granting or have granted you credit
Employers considering you for employment
Insurers considering issuing you an insurance policy
Government agencies reviewing your financial status in connection with issuing you a license
Anyone else with. a legitimate business reason for needing the information

The credit bureau must automatically delete:

Information on a bankruptcy which is more than 10 years old
Other adverse information which is more than 7 years old

(These rules do not apply to information provided for loans over $50,000, underwriting over $50,OO0 of insurance or employment decision when the salary exceeds $20,000.)

YOUR FAIR CREDIT BILLING RIGRTS

The Fair Credit Billing Act allows consumers to correct errors in their credit card or charge accounts in a speedy and effective manner.

You have the right to dispute a bill, and the creditor must:

Acknowledge you written complaint within 30 days.
Investigate and notify you of the action taken with two billing cycles or 90 days, whichever is less.
You cannot be billed or forced to pay the disputed amount until the creditor has finished its investigation.
Creditor must indicate on its statement that you need not pay any amount in dispute.
It is determined that you do owe the bill, you must be given the usual time to pay the bill.

If there was an error in your bill, you need not pay any finance charges on the disputed amount. If it is determined that there was no error, you must pay the finance charges. Your credit history is protected during the dispute process.

Creditor may not report you as delinquent to a credit bureau while the error is being investigated.
If it is determined that there was no error, and you disagree with the finding, the creditor can report you as delinquent but must also report that the item is "in dispute."
When the matter is settled, the creditor must report the outcome to the credit bureau and anyone else who received reports of the dispute.
A credit balance in your account must be refunded promptly.
A creditor must refund a credit balance within 7 business days if you request it in writing.
A creditor must refund (by cash, check or money order) any credit balance remaining in your account for more than 6 months.

YOUR CREDIT CARD RIGHTS There are special rules which protect you when receiving and using a credit card. A creditor cannot send you a card which you have not requested. A creditor may send a replacement or renewal card.

If your creditor card is lost or stolen:

You pay nothing on unauthorized charges if you notify the creditor before any charges are made.
You must pay the first $50 charged if you fail to notify the creditor before the charges are made.
You have no liability if you haven't "accepted" the credit card.

Thirty day. prior to the renewal date of a credit card or charge account that is subject to annual fee, membership fee or other periodic charges, the creditor must disclose the following information to you:

Terms that would be in effect upon renewal of the account, including:

  • annual percentage rate
  • fees for issuance or availability
  • minimum finance charge
  • transaction charges
  • grace period
  • balance computation method used by issuer.

How and when the cardholder may terminate credit availability under the account to avoid paying the renewal fee.

You may withhold payment of any balance due on defective merchandise or services purchased with a credit card, provided you have made a good faith effort to return the goods or resolve the problem with the merchant form whom you made the purchase.

If you hold a third-party credit card (such as VISA or MASTERCARD), the right to withhold payment applies only if:

The original amount of the purchase exceeded $80 The sale took place in your home state or within 100 miles of your current address.

LEGAL REMEDIES

The laws provide legal remedies for violations by creditors, credit agencies or debt collectors. We may be able to sue to recover actual damages, court costs and attorney's fees, plus, if the violation was intentional, additional penalties as awarded by the court. These penalties (called "punitive damages") range up to $1,000 in most cases, but may go as high as $10,000.

Class action suits are also permitted. A class action suit is one filed on behalf of a group of people with similar claims. The legal liability may go up to $500,000 or 1% of the creditor's net worth, which ever is less.

In addition, the Fair Credit Reporting Act provides that any unauthorized person who secures a credit report-or any employee of a credit reporting agency who supplies a credit report to unauthorized persons may be fined up to $5,000 or imprisoned for one year, or both.

WE ARE PREPARED TO DISCUSS WITH YOU WHAT ACTION LAWYERS UNITED FOR DEBT RELIEF CAN TAKE TO PROTECT YOU RIGHTS AND RECOVER DAMAGES. GIVE US A CALL IF YOU HAVE ANY QUESTIONS.