Consumer Protection Credit Card Debts

Consumer protection credit card debt is an area that more and more people are becoming interested in as charge card debt escalates and more people need to understand how to be treated fairly by lenders and reporting agencies. Most individuals do not know what their rights are under the Federal Fair Credit Reporting Act which was passed into law in 1977. This law gives consumer protections credit card debts rights to all borrowers that must be followed by these lenders. It is important to be aware of what these are and what creditors are allowed to say and do, otherwise having these rights will not help when needing them most.

The first things each borrower must be aware of are the laws surrounding personal financial reports. Consumer protection credit card debt laws state that the borrower has a right to know what is contained in that financial record. There are three national reporting bureaus: TRW, TransUnion and Equifax. Under Federal law, these agencies must provide a free copy of one's financial report if the borrower has been denied a loan or other charge account in the last 30 days. Even if not denied an account or a loan, consumer protections credit card debts state that the agency must still provide the requested report but can charge a small fee.

Also, be aware of what behavior by the lender is legal. Creditors may only call the debtor between the hours of 8 am and 9 pm. Under consumer protection credit card debt rights creditors may only call the place of employment if granted permission by the borrower. They can not threaten the debtor or garnish their wages without a court order. Charge cards are unsecured loans and they know there is only so much they can do without legal recourse. This legal process will allow negotiation of fees, payoff amounts, as well as make possible a request for an extension of terms. Consumer protections credit card debts also allow requests that all payments be applied to the current amount due, which avoids further accounts from being reported as past due.

It is very important to know the general legalities of this law so the borrower can protect himself and their family from further stress. Invest in a good answering machine, and inform all collectors that their calls are being recorded. Also, make it clear that the borrower is aware of their consumer protection credit card debt rights and one will find that the caller will be much more polite. If they believe they can pressure a debtor into making payments they will attempt to negate the consumer's legal rights. "In thee O Lord, do I put my trust...Pull me out of the net that they have laid privily for me: for thou art my strength" (Psalm 31:1-4). Become educated on consumer protections credit card debts rights, but more so, be a wise money manager.

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