What Are My Rights As a Credit Card Consumer?

As a credit card consumer you do have certain rights. The Federal Trade Commission outlines these rights as a means to protect you against unfair treatment by credit card companies. It imperative to know your consumer rights, and the steps to take if your rights are violated by a card company.

Credit Reports

Credit reports show your credit card activity. Credit card companies frequently send updates to the three credit bureaus. They submit information such as your credit limit, available credit and account standing. If you pay the account as agreed, this information helps boost your personal credit rating. As a credit card consumer, you have the right to know what your credit card companies are reporting about you. Ordering a free credit report yearly from Annual Credit Report is key to reviewing your credit history and creditor remarks.

Credit Rejections

Applying for a credit card will either result in an approval or rejection. If a credit card company rejects your credit application, you have the right to know the reasons behind the rejection. The Federal Trade Commission also states that credit card companies and other creditors cannot deny your application due to factors such as sex, color of skin, age, religious beliefs or income source. Credit card applications do inquire about monthly income and income source. Card companies cannot reject your application because you receive government assistance.

Outstanding Balances

The Fair Debt Collection Practices Act protects you against unfair or abusive treatment by the hands of debt collectors. Being behind or delinquent on bills will prompt telephone calls and letters from creditors and collection agencies. While these companies can contact you to collect a debt, there are limits to their actions. Debt collectors do not have the right to contact you at work, call your home after 9 p.m., make threats, falsify information and they have stop contact if you request this in writing.

What to Do If Rights are Violated?

Consumers have the right to take legal action if a credit card company violates their consumer rights. Keeping a record of harassing letters and recording telephone conversations with debt collectors can help prove unfair and abusive treatment. Consumers have up to one year to file a lawsuit for violated rights, and if found guilty of an offense, a court may require the debt collector to pay the consumer $1,000 plus the costs of their court fees.