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		Know your rights: Frequently Asked Questions Your Legal Rights


Your Legal Rights
Federal law protects your rights as a credit consumer. The information in this section contains a brief description of your general legal rights. For additional information on your legal rights, visit the United States Federal Trade Commission (FTC) web site at www.ftc.gov.

Equal Credit Opportunity Act Fair Credit and Charge Card Disclosure Act Fair Credit Billing Act Fair Credit Reporting Act Fair Debt Collection Practices Act Fair Debt Collection Practices Act (expanded version) California Consumer Rights regarding Debt Collection Practices


Equal Credit Opportunity Act

The Equal Credit Opportunity Act guarantees equal opportunity to all customers of credit card companies, banks, loan and finance companies, retail stores and credit unions. Discrimination on the basis of race, color, sex, national origin, marital status, age (provided the customer has the capacity to enter into a binding contract), receipt of public assistance, or the fact that the consumer has in good faith exercised any right under the Consumer Credit Protection Act is strictly prohibited. The following summarizes some of the key protections under the Act: In general, creditors cannot ask you for your race, sex, or national origin, nor can they use theses factors when deciding whether to give you a loan or other credit. However, if you apply for a mortgage, the lender is required to ask you about these facts. Your answers may be used to help enforce laws against discrimination. Even so, you aren't required to give this information. You're entitled to your own credit history-in your individual name-even if you are married. This can be important if you should ever need credit on your own. However, if you share credit with your spouse, you will share your own partner's credit record as well. If you apply for unsecured credit on your own, your marital status is off-limits. You don't have to tell a creditor you're divorces or you're receiving support payments. However, a lender has a legitimate interest in your ability to repay your debts. Therefore, you may have to disclose any alimony, maintenance, or child support you're obligate to pay. You must also list any support payments you receive if you want to be counted as income on your application. You don't have to tell a creditor you're divorces or you're receiving support payments. However, a lender has a legitimate interest in your ability to repay your debts. Therefore, you may have to disclose any alimony, maintenance, or child support you're obligate to pay. You must also list any support payments you receive if you want to be counted as income on your application. As long as you're old enough to sign a legal contract, your age can be used against you. A creditor cannot discriminate against you if you receive public assistance. However, a creditor can verify any income you list on a credit application.
Send your letter by certified mail, and request a return receipt so you can document what the credit bureau received and when. Keep copies of your dispute letter and enclosures. Credit bureaus must usually investigate the items in question within 30 days, unless they consider your dispute frivolous. They also must forward all relevant date you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureau, it must investigate, review all relevant information provided by the credit bureau, and report the results to the credit bureau. If the information provider finds the disputed information to be inaccurate, it must notify any nationwide credit bureau that it reports to so that the credit bureau can correct this information in your file. Note that: Disputed information that cannot be verified must be deleted from your file. If your report contains erroneous information, the credit bureau must correct it. If an item is incomplete, the credit bureau must complete it. For example, if your file shows that you have been late making payments, but fails to show that you are no longer delinquent, the credit bureau must show that you're current. If your file shows an account that belongs to someone else, the credit bureau must delete it.
When the investigation is complete, the credit bureau must give you written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the credit bureau gives you a written notice that includes the name, address, and phone number of the information provider.

Dealing with creditors/information providers
In addition to writing to the credit bureau, tell the creditor or other information providers in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many information providers specify an address for disputes. If the information provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if your are correct-that is, if the disputed information is not accurate-the information provider must not use it again.

Additional Resources For more information, consult How to Dispute Credit Report Errors and Fair Credit Reporting, two brochures available from the Federal Trade Commission or online at www.consumer.gov/idtheft or For more information, go to our Financial Library and download the two brochures. If you want a summarized version of Fair Credit Reporting Act, go to Your Legal Rights Section