Fair Credit Billing Act
You have the right to prompt action to correct errors on open-end credit accounts (e.g. department stores). You have protection of your credit rating while settling disputes.
Credit Disputes.
A creditor may not report you as delinquent if you dispute a charge under this law. This applies specifically to open-end accounts such as credit cards, revolving charge accounts, and overdraft checking.
Creditor Obligations.
Suppose you question the accuracy of an item on your monthly statement. You must first notify the creditor in 60 days of receiving the bill. This is what happens next.
- The creditor must mail or deliver written acknowledgement within 30 days.
- The creditor must not do anything to damage your credit rating while the item is disputed.
- The creditor must resolve the dispute within two billing cycles (and no later than 90 days) after receiving the billing-error notice from you.
Fair Debt Collection Practices Act.
You are to receive fair treatment from debt collectors. They are prohibited from engaging in unfair, deceptive, or abusive practices.
Professional debt collectors are the target of this act, who did not originate the loan. Technically, it does not apply to banks, department stores, and other lenders who collect their own debts. No respectable lender is permitted to engage in this behavior.
Debt Collectors.
Debt collectors...- are allowed to contact people, other than you, to locate you AND make an attempt to contact you regarding your debt;
- must send written notice after contacting you, informing you of the debt amount, the creditor's name, and that the debt will be considered valid unless you dispute it within 30 days;
- cannot harras, oppress, or abuse you in collecting a debt.
This includes obscene language, publicizing the debt, or making anonymous or annoying phone calls. Debt collectors cannot misrepresent themselves, the debt status, nor the consequences of not paying it unless they are lawful and intended to be taken.
You can sue for actual and punitive damages against debt collectors who violate this act (Fair Debt Collection Practices Act).