WHAT YOU SHOULD KNOW ABOUT THE FAIR CREDIT REPORTING ACT, THE TRUTH IN LENDING ACT, AND THE EQUAL CREDIT OPPORTUNITY ACT

Recent studies have shown that almost half of all credit reports contain errors. The FCRA prohibits inaccurate, obsolete or impermissible credit reports or failures to honor consumers' rights under the Act. The Act was designed to protect the privacy of information in credit reports and to insure that information supplied by the credit bureaus is as accurate as possible.

The consumer has a right to request a copy of his/her credit report and to check whether the report is accurate and complete. If it is not, the FCRA give the right to dispute the completeness or accuracy of any information in the report. When notified, the credit bureau must investigate the matter and correct any information that it finds is not reported accurately. Information that cannot be verified must be deleted. If the investigation does not resolve the dispute, the consumer may file a hundred word statement setting forth the nature of the dispute. Upon request, this statement must be noted in future credit reports. The consumer also has the right to be told the name of anyone who receive his/her credit report in the past six months and this report can only be given to those with legitimate business needs.

THE TRUTH IN LENDING ACT (TIL)

Hidden finance charges, like express shipping charges, documentary fees, and non-filing insurance can lead to $1,000 minimum damages, attorneys fees and even recision of the entire transaction under TIL. TIL is intended to promote informed use and awareness of cost of credit and to ensure meaningful, accurate disclosure to enable ready comparison of credit terms. It covers traditional loans, installment credit, credit cards, mortgagesensure, all kinds of credit extended to individuals for personal, family or household needs.

Interpretive regulations are called Regulation Z. They are fairly long and detailed and impose basic requirements such as: the creditor must make explicitly clear what the total finance charge to the consumer is including interest plus any service caring or any other charges. The creditor must use this finance charge as a basis for quoting an annual percentage; in advertising terms, if a creditor mentions one feature such as the amount of the down payment, the creditor must mention all other important terms, such as number, amount and period of payments that follow.

THE EQUAL CREDITORS OPPORTUNITY ACT (ECOA)

The ECOA makes it illegal for creditors to discriminate against applicants on the basis of their sex, marital status, race, national origin, religion, age or public assistance income. It also contains specific rules that creditors must follow when evaluating their customers credit history. For example, under ECOA, a creditor cannot automatically close or change the terms of a joint account, solely because of the death of the customer's spouse.

If you believe that you have been a victim of any violation of the laws referred to above, contact us and we will attempt to protect your rights in the courts and recover any damages you have suffered because of the law violation. You may write to us at the address referred to above or call (312)939-2221 and ask for Jerry Lamet or Kathy Frerichs.