Module 4: Consumer Rights and Responsibilities

Rights under Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA)

Understanding your rights under these acts can protect you against unfair practices and ensure you are treated fairly by creditors and debt collectors.

Fair Credit Reporting Act (FCRA):

• Right to Access Information: You have the right to request a free copy of your credit report every 12 months from each credit reporting agency.

  
  

• Right to Correct Errors: You can dispute inaccurate or incomplete information, and the credit reporting agencies must investigate and correct any errors promptly.

  
  

• Privacy of Information: Credit reporting agencies cannot provide your credit report to employers or potential employers without your written consent.

Fair Debt Collection Practices Act (FDCPA):

• Communication Guidelines: Debt collectors cannot contact you at inconvenient times or places. They are typically not allowed to contact you before 8 a.m. or after 9 p.m., unless you agree.

  
  

• Harassment or Abuse Prohibition: Collectors are not allowed to harass, oppress, or abuse you or any third parties they contact. This includes threats of violence, obscene language, and repeated phone calls intended to annoy.

  
  

• Deception Prohibition: Debt collectors cannot use any false, deceptive, or misleading practices. This includes misrepresenting the debt or using a false company name.

  
  

• Validation of the Debt: Collectors must send you a written notice of the debt within five days of first contacting you. This notice must include the amount of the debt, the name of the creditor, and your right to dispute the debt.

Borrower Responsibilities

Being a responsible borrower not only helps in maintaining good credit but also ensures that you avoid legal complications.

1. Keeping Personal Information Updated:

   Regularly update your contact information with lenders and credit bureaus to ensure you receive all correspondence regarding your credit and debt obligations.

   
   

2. Reading and Understanding Loan Agreements Before Signing:

   Always review the terms and conditions of any loan agreement carefully before signing.

   
   

   Understand the interest rates, fees, penalties, and the total cost of the loan.

   Ensure you are fully aware of your repayment obligations, including when payments are due, the duration of the loan, and any penalties for late or missed payments.

Being informed about your rights and responsibilities empowers you to make better financial decisions and protects you from potential abuses or misunderstandings in the credit and collection processes.