Credit Cards

A BROAD UNDERSTANDING OF CONSUMER LAWS UNDER THE CONSUMER CREDIT PROTECTION ACT.

Consumer Protection Sign

By: Akanksha A. Panicker

Consumer protection laws are set up just to prevent the consumer from having their rights infringed upon. In an age where information about any individual is open to the internet sphere, the ability of creditors to gather financial data about a consumer is a worrying idea to contemplate. 

Credit protection- as one of the many forms of consumer protection- is thus extremely important. The credit protection efforts mostly work to shield consumers from any practice that might harm a consumer’s ability to obtain future credit, typically by preventing practices that might unfairly result in an adverse impact on the consumer’s credit score. Federal laws restrict the information that can be used to determine a consumer’s creditworthiness, and it can be traced back to the Consumer Credit Protection Act of 1968. 

TO YOUR CREDIT: ACTUAL WAYS TO DEAL WITH A NEGATIVE CREDIT REPORT

Credit Report/Credit Score

By: Akanksha A. Panicker

An individual’s credit score determines a lot in their lives. The lower the score, the fewer are the options available to an individual, and the less willing are lenders to work with them. Consequently, a person’s credit report is a determining factor in their mobility. 

A credit report is a detailed breakdown of an individual’s credit history, as prepared by a credit bureau. The bureaus function by collecting financial information about people, and the lenders use these reports to determine the creditworthiness of loan seekers.  Equifax, TransUnion, and Experian are the three national credit reporting bureaus and collect consumers’ financial details, although there might be key differences. 

It must be kept in mind that credit repair, which is removing or correcting inaccurate information from one’s credit report for a more favorable depiction of one’s finances or credit score, can be done by oneself or hiring a company that specializes in credit repair. Neither path is without its issues, but it is important to understand every situation to prevent scams and further damage caused to one’s credit. 

UNFAIR CREDIT CARD PRACTICES: KNOW YOUR RIGHTS

By: Akanksha A. Panicker

Between the horror stories of credit card debt and the tanking of credit card scores, the idea of using a card itself is daunting. It’s well established that a credit card is a valuable tool for spending, but irresponsible usage can lead to repercussions that span what feels like eons. 

Before swearing to forsake credit cards altogether, one needs to understand practices that credit card companies use. It’s no secret that the catalytic mortgage and foreclosure crisis led to the rise of financial products designed to capture lower-income users was targeted at minority borrowers. As a result, predatory lending practices have led to a number of lawsuits against loan companies and banks. Even today, consumer protection acts are designed in order to minimize the damage that can be afflicted by predatory credit card companies.