Access to Credit
You have an equal right to credit. You cannot be denied credit because of your race, sex, color, religion, national origin, marital status, age (unless you’re not 18 yet), or because you may be receiving public assistance of some kind. In addition, if you’re married, the creditor may not, as part of the credit application process, ask about your plans to have children.
You have the right to know how much credit will cost you. Federal and state laws require that you be informed how much credit will cost you. You must be informed of the actual cost of credit—the “finance charge”—and credit costs must be referred to in terms of the annual percentage rate of interest (APR). This uniform rate will enable you to compare the cost of credit from lender to lender.
If your credit application is denied, you have the right to know why. The law requires creditors to notify you within 30 days whether your credit application has been accepted or rejected. If your application is rejected, you must be told why in writing, or that you can request the specific reasons why by contacting the creditor within 60 days. The creditor then has 30 days to answer.
If your credit is denied, it’s good to find out why. A mistake may have been made. If not, the reasons will help you make a better application the next time. And if the law was broken and your application was not fairly evaluated, you have rights and can seek correction.
If You Fall Behind or Don’t Pay
If you fall behind or don’t pay a bill on time—even for a legitimate reason— you may be in default—you may have broken your promise (the contract) to pay according to a certain schedule. It is usually best to let the creditor know that you are having trouble making payments before you are in default. Once you have defaulted, the creditor may take certain actions to collect the debt. But you still have rights . . .
If the Creditor Repossesses
A creditor may repossess collateral (take back the car, stereo, or other item you bought with the money loaned to you) only when your credit contract permits it. However, a creditor may not use force or otherwise breach the peace attempting to repossess your goods. Your home may not be entered to repossess goods unless there is a court order to do so.
On Your Own, 2008 Edition 47
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