Credit Card Laws Can Save Your Hide

Although it may not seem like it sometimes, there are laws governing the issuance and denial of unsecured credit (for example, credit cards). It isn’t a bad idea to bone up on a few credit card laws before you ever venture into the world of credit cards, just to know your rights and their rights, and to be clear on what you are about to get yourself into. A list of basic laws pertaining to credit cards can be found at:

http://www.cardreport.com/laws/credit-laws.html

A good summary of the Consumer Credit Protection Act of 1968, as well as a lot of other good supplemental material is also available from the Federal Reserve at:

http://www.federalreserve.gov/pubs/consumerhdbk/

The Consumer Credit Protection Act of 1968 required for the first time that credit card companies spell out the terms and conditions of issuing credit in a common language so that borrowers could understand what the actual charges were, compare costs, and shop for the best deal.

Many other credit protections have been set up since that landmark law was passed. Some of the current laws in place, for example, state:

• that you cannot be denied a credit card just because you're a single woman
• that you can limit your risk if a credit card is lost or stolen
• that you can resolve errors in your monthly bill without damage to your credit rating and
• that you cannot have credit shut off just because you've reached age 62

Just because a law is in place doesn’t mean that lenders won’t do everything they can to circumvent the law, or that lenders will not break the law outright.

Knowing the laws and your rights as a consumer is only a first step. In addition to that, it is your responsibility to carefully read over all credit agreements and terms before signing anything or submitting any application, and if you feel that after all of that you have been defrauded, you have to take the steps necessary to press your case in court. This can be so difficult as to be almost a second form of punishment.

It is far easier to beware of any credit agreement and use unsecured credit sparsely and responsibly. If you find that a lender is behaving in an unscrupulous manner, report the lender and then close your account. If you are unable to close your account because of a disputed balance or any other reason, seek legal assistance and do what you have to do.

Keep your credit card lending agreement (the boring little pamphlet you get in the mail after you get your card that almost no one ever reads or keep) and file any dispute the minute you become aware of it according to the procedure outlined in the agreement. Keep copies of all correspondence with the credit card company and notarize your correspondence if possible, using return receipts to insure they did get your dispute.

Laws are on the books to protect you, but the best protection ultimately is, “Buyer beware.”