Credit Terms

• Even before you enter into a credit agreement, you are guaranteed certain rights and protections. The Truth in Lending Act imposes specific duties to lenders whenever extending credit offers and terms to debtors. Lenders must clearly and conspicuously disclose terms about the credit agreement, including, but not limited to: the amount of interest charged, the dates and manner in which repayment is required, the amount loaned, the creditor's identity and any financing charges involved.
  
  

Credit Report

• Debtors are also guaranteed the right to a free yearly inspection of their credit reports under the Fair Credit Reporting Act. Any time you enter into a consumer credit agreement, pay a bill, apply for a credit card or even rent an apartment, these transactions are recorded and placed on your credit report by the three credit reporting bureaus: Experian, TransUnion and Equifax. Under the Fair Credit Reporting Act, you have the right to ask each of these three companies for a copy of your credit report every year.
  
  

Credit Collections

• The Fair Debt Collections Practices Act imposes a variety of limitations on how debt collectors and creditors can pursue a debtor. The law limits, for example, the hours when creditors can call you to try to collect on a debt, requiring that all calls be made after 8:00 a.m. and before 9:00 p.m. The law also prevents the creditor from misrepresenting how much money is owed, contacting a consumer it knows is represented by an attorney or threatening arrest or lawsuits if these actions are not possible or actually being contemplated.
  
  

Credit Card Debtors

• Under the Card Act of 2009, credit card holders gained additional rights and protections. For example, credit card companies can no longer retroactively increase interest rates on existing balances unless the rate was offered as part of an introductory offer, the card has a variable interest rate or the debtor is more than 60 days late on payments. Other protections require the creditor to apply payments to balances with the highest interest rate first and to allow the debtors to choose whether they want over-limit fees or not.