Protection Under Consumer Credit Laws

Truth In Lending & Consumer Leasing Acts

If a creditor fails to disclose information required under either of these acts, gives inaccurate information, or does not comply with the rules regarding credit cards or the right to cancel them, you may sue for actual damages, that is any money loss you suffer.

Equal Credit Opportunity Act

If you think you can prove that a creditor has discriminated against you for any reason prohibited by the ECOA, you may sue for actual damages plus punitive damages(that is, damages for the fact that the law has been violated) of up to $10,000.

Fair Credit Billing Act

A creditor that fails to comply with the rules applying to the correction of billing errors automatically forfeits the amount owed on the item in question and any finance charges on it, up to a combined total of $50 dollars even if the bill was correct. You may also sure for actual damages plus twice the amount of any finance charges.

Credit Card Accountability, Responsibility, & Disclosure Act of 2009

Also known as the Credit CARD Act, this law provides the most sweeping changes in credit card protections for you since the Truth in Lending Act of 1968. The Credit Card Accountability, Responsibility, and Disclosure Act places new restrictions on credit card lending and eliminates certain fees. The accompanying Financial Planning for Life's Situations feature summarizes new credit card rules which began on February 22, 2010.

Consumer Credit Reporting Reform Act

The Consumer Credit Reporting Reform Act of 1997 places the burden of proof for accurate credit information on the credit reporting agency rather than on you. Under this law, the creditor must certify that disputed data are accurate. If a creditor or the credit bureau verifies incorrect data, you can sue for damages. The federal government and state attorneys general can also sue creditors for civil damages.

Fair Credit Reporting Act

You may sue any credit reporting agency or creditor for violating the rules regarding access to your credit records and correction of errors in your credit file. You are entitled to actual damages plus any punitive damages the court allows if the violation is proven to have been intentional.