Credit report laws and acts are formulated with the objective of protecting the consumers in credit related affairs. There are many laws and acts in the United States of America related to credit reports. The Federal Trade Commission (FTC) is empowered to enforce many of these laws. It is also entrusted with the responsibility of making the consumers aware of the different laws and acts. Lack of information on the part of the consumer may lead to victimization or discrimination.
Various Credit Report Laws and Acts of the United States of America are –
The Consumer Leasing Act -
According to this act, the companies engaged in leasing have to divulge the details of leasing contracts to the consumer. Such details generally include the terms and conditions of the leasing contract and the costs of the same.
The Credit Repair Organizations Act –
This act has been laid down for consumers who are seeking services for credit repair. According to this act the credit repair organizations must provide proper information to the service seekers so that they can make a judicious decision. This act seeks to protect credit repair service seekers from being deceived by tricky advertisements and unfair practices.
The Fair Credit Billing Act –
This act pertains to the resolution of errors related to credit card bills. Specific guidelines are laid down in this act to resolve such issues.
The Equal Credit Opportunity Act –
According to the Equal Credit Opportunity Act an applicant seeking credit cannot be discriminated against on the basis of religion, race, sex, marital status, age or national origin. Also, according to this act, a person cannot be denied credit on the grounds of his/her receiving public assistance.
The Fair Credit Reporting Act (FCRA) –
The credit rating agencies give out credit information of consumers to the lenders. The Fair Credit Reporting Act (FCRA) empowers the consumers with the right to know what information about him is being given out by the credit rating agencies.
The Fair Debt Collection Practices Act (FDCPA) –
This act lays down specific guidelines for debt collectors. The objective of this act is to prevent collection agencies or companies from resorting to unfair practices while collecting outstanding dues.
The Home Ownership and Equity Protection Act (HOEPA) –
This act imposes certain restrictive conditions on high cost home loans. The interest rates or fees of such loans are generally above a certain specified level.
The Identity Theft and Assumption Deterrence Act –
According to this act, the person whose identity is stolen, is identified as a victim. The act establishes identity theft as a federal crime. The punishment for such crime is a maximum fine of 250,000 US dollars and imprisonment up to 15 years.
Notices of Rights and Duties under the FCRA –
This was enacted on 1st July 1997. The objective of the Notices of Rights and Duties under the FCRA is to ensure the privacy, fairness and accuracy of credit reports maintained by credit reporting agencies.
The Truth in Lending Act -
According to this act a lender must provide a consumer a written disclosure of terms of repayment and costs involved before a credit transaction is undertaken.
Fair Credit Reporting Act
Equal Credit Opportunity Act