How to Make Your Credit Card Rights Work for You: Save Money

By Franshone Winn Esq

How to Use Your Credit Card Rights Work For You is a clear, concise, and comprehensive guide of credit card rights and how to use them. The book is a must read for credit card holders of all ages and also those who are applying for a credit card. The book explains your rights when you apply for a credit card, when you have a credit card, and when you have a dispute with the credit card issuer. The book also explains what to do when you feel your credit card rights are Violated. Readers of this book will know how to use their credit card rights to save money and reduce debt.

• Language: English
• Publisher: Xlibris US
• Release date: Mar 9, 2012
• ISBN: 9781469169439

Franshone Winn Esq

Franshone Winn is an economist and an attorney engaged in the practice of law in New York. Ms. Winn has a Juris Doctor degree from Touro College, Jacob D. Fuchsberg Law Center and a Masters degree in Economics with a concentration in Public Finance from Graduate Faculty, New School for Social Research. Ms. Winn is a member of New York and New Jersey bars, and is certified to practice before the U.S. District Courts of Southern and Eastern Districts of New York, United States Court of Appeals for the Second Circuit, and the United States Supreme Court.

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Copyright © 2012 by Franshone Winn, Esq.

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.

This work is published with the understanding that the author is supplying information, but not attempting to render legal or professional services. If such services are required the assistance of an appropriate professional should be sought.

To order additional copies of this book, contact:

Xlibris Corporation

1-888-795-4274

www.Xlibris.com

[e-mail]

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CONTENTS

INTRODUCTION

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 11

APPENDIX A

APPENDIX B

APPENDIX C

APPENDIX D

APPENDIX E

APPENDIX F

APPENDIX G

APPENDIX H

Glossary

INTRODUCTION

In this book you will find what your credit card rights are and how to use them to your advantage. You have rights when you apply for a credit card, when you own a credit card, and when you disagree with the charges on your credit card.

You will find that there are certain credit card debts that can’t be enforced against you. There are also certain credit card debts that should not be reported to the credit reporting bureaus.

You have a bundle of federal and state rights. You have many credit card rights that are set forth by category in each chapter. Each chapter provides you with information about a particular credit card right and what to do if that right was violated.

The law for credit cards are hundreds of pages of text. The important and relevant sections of the law for credit cards are cited and explained throughout this book with text provided in the appendices at the back of the book. At the back of the book is also a glossary of credit card terms and definitions.

By using your rights you will save money, remove outdated and erroneous debts from your credit report, protect your credit, and protect yourself from unfair practices.

Chapter 1

CREDITORS CAN’T DISCRIMINATE AGAINST YOU

When a credit card company evaluates your credit card application they can’t discriminate against you based on your race, color, sex, religion, marital status, national origin, ethnicity, age, and receipt of income from reliable public assistance.

The federal Equal Credit Opportunity Act protects you against discrimination by creditors and credit card companies. This is to insure that credit card companies apply the same standard to everyone when they apply for a credit card or request a credit increase on their credit card.

The Standard To Evaluate Your Credit Card Application

The standard to evaluate your credit card application is the ability to pay. The ability to pay is a standard based on income, expenses, and debt. Credit card companies may accept or deny your credit card application based on your ability to repay the charges on your credit card.

Credit card companies may not discount or reduce your income, based on your race, color, sex, religion, national origin, ethnicity, your receipt of public assistance, or marital status. Credit card companies can’t discriminate by reducing or discounting your income.

For instance, credit card companies can’t count a man’s salary at 100% and consider a woman’s salary at 80% when evaluating a credit application. Credit card companies can’t assume a woman in her childbearing years will stop working to raise children and discount or reduce her income. Credit card companies are prohibited from asking about plans to have children.

If you receive alimony, maintenance, or child support and do not plan to use that source of income to repay money borrowed, you do not have to list that income on your credit card application. However, if you pay alimony, maintenance, or child support you can be asked how these items affect your income.

You can’t be asked about your marital status unless your spouse will help secure, use, or be legally responsible for the credit card, or you live in a community property state.

Presently, the following are community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and Alaska. In Alaska marital property is considered community property by agreement.

If you are married and live in a community property state, the credit cards you obtain during the marriage may be considered marital property. A credit card issuer may inquire about your marital status because both you and your spouse may owe the credit card debt regardless who signed the credit card agreement during your marriage.

If you are under the age of 21 years old you may not receive a credit card without conditions. Creditors can’t issue a credit card to a person under the age of 21 years old unless they have a co-signer who is 21 years or older or they can provide proof of income to verify their ability to repay the money borrowed on the credit card.

The bottom line is credit card companies can’t be discriminated against you when you apply for credit or request a credit increase on your credit card if you have proof that you have the ability to repay money borrowed on the credit card.

The Creditor’s Response To Your Credit Card Application

You have the right to know whether your credit card application was accepted or rejected. The credit card company is required to let you know if your application was accepted or rejected within 30 days after you ‘ve completed your credit card application.

If your credit card application is denied, you have the legal right to know why. You have the right to be given the specific reason for denial in writing.

Credit card companies must give you the specific reason your application was denied. The following is an example of unacceptable reason for denial of your credit card application: you did not meet standards. This reason is unacceptable because there is no specific information given to find whether you were discriminated against. On the other hand, reasons like your income was low or you have not been employed long are acceptable as specific reason to deny your credit card application if the reason is true.

If you are not given a specific reason for the denial of the credit card application, you should mail a written request to the credit card company to request the specific reason for the denial. You must make the request within 60 days after your credit card application is denied.

What To Do If A Creditor Discriminates Against You

If you find you have been discriminated against you may consider taking the following action:

1) Complain to the credit card company and cite the federal Equal Credit Opportunity Act; the credit card company may re-consider your credit card application.

2) A number of federal agencies share enforcement responsibility for the Equal Credit Opportunity Act. You may file a written complaint with the federal agency responsible for regulating and enforcing the type of credit card you applied.

The following is a list of federal agencies to contact for each type of credit card:

For nationally-chartered banks (National or N.A. will be part of the name):

Comptroller of the Currency

Consumer Assistance Group

1301 McKinney Street

Houston, TX 77010-9050

1-800-613-6743

www.helpwithmybank.gov

For state-chartered banks insured by the Federal Deposit Insurance Corporation, but not members of the Federal Reserve System:

Federal Deposit Insurance Corporation

Consumer Response Center

2345 Grand Boulevard

Suite 100

Kansas City, MO 64108

1-877-ASK-FDIC (1-877-275-3342), www.fdic.gov

For federally-chartered or federally insured savings and loans:

Office of Thrift Supervision

Consumer Affairs

1700 G Street, NW

Washington, D.C. 20552

1-800-842-6929, TTY 1-800-877-8339, www.ots.treas.gov

For federally-chartered credit unions:

National Credit Union Administration

1775 Duke Street

Suite 4206

Alexandria, VA 22314-3437

1-800-755-1030, www.ncua.gov

For retail and department stores; mortgage, small loan and consumer finance companies, oil companies, public utilities, state credit unions, government lending programs, or travel and expense credit card companies are involved contact:

Federal Trade Commission

Consumer Response Center

Washington, D.C. 20580

1-877-FTC-HELP (1-877-382-4357), TDD 1-866-853-4261,

www.ftc.gov

For state member banks of the Federal Reserve System:

Federal Reserve Consumer Help Center

P.O. Box 1200

Minneapolis, MN 55480

1-888-851-1920; DD 1-877-766-8533;

www.federalreserveconsumerhelp.gov

For discrimination complaints against all kinds of creditors:

Department of Justice

Civil Rights Division

Washington, D.C. 20530

www.usdoj.gov/crt;

You must provide the agency with the name and address of the credit card company, and a brief statement of the complaint along with copies of supporting documents. The letter and supporting documents should be sent by certified mail so that there is a record that the complaint was mailed.

3) You may also file a complaint with your State Attorney General’s Office. Your State Attorney General’s office address and telephone number set forth at Appendix H.

You may contact the federal agency or your state’s attorney general

office before filing a lawsuit.

4) You may sue the credit card company in court. If you consider pursuing an action in court you should consult with an attorney. There are time limits to commencing an action in court.

If a Judge approves, you and a group of people with similar complaint against the credit card company may commence a lawsuit against a credit card company. A lawsuit commenced by a group of people with similar complaint is a class action lawsuit.

You have options on the type of action you may take once you believe you have been discriminated against. You may complain to the credit card company, the federal agency that regulates and enforces the law against the credit card company, your state attorney general, and/or an attorney if you are considering pursuing the action in court.

Chapter 2

YOU HAVE THE RIGHT TO FULL DISCLOSURE

The credit card companies are required to give you full disclosure of the terms and conditions of the credit card. The terms and conditions include how much you will have to pay for the credit; the cost of the credit card. Under the federal Fair Credit and Charge Card Disclosure Act you may compare terms and fees before you accept a credit card.

When Terms and Conditions Must Be Disclosed

Before you select a credit card you have the right to know the credit card terms and conditions. When you apply for a credit card you have the right to full disclosure of the terms and conditions of the credit card. And when credit card companies offer a credit card they must provide you with information about the terms and the conditions of the credit card. When you are pre-approved for a credit card you have the right to know the terms and conditions of the credit card.

You have the right to reject the card up until the moment of activation. If the credit card is not activated your rejection of the credit card will not adversely affect your credit.

When you own a credit card and the credit card company plans to change the terms of your credit card you must receive notice. The credit card company must send you notice 45 days before there is a change to the terms of your credit card.

The credit card company must give you notice so that you may exercise your option to cancel the credit card before the change takes effect. If you take the option to cancel the credit card, the credit card company may close your account. You will be required to pay off the balance.

How Terms And Conditions Must Be Disclosed

Credit card companies must disclose the terms and conditions of the credit card in writing. Credit card companies must make it easy for you to read and obtain a copy of the credit card agreement. Under the Credit Card Accountability Responsibility and Disclosure Act of 2009, credit card companies are required to make their agreements readable and also accessible to the public.

Credit companies are required to provide a copy of the credit card terms and conditions within 30 days following your request.

You may also obtain a copy of the credit card terms and conditions either by clicking on a link on the credit card company’s website or calling the credit card company at their toll free number.

What Terms And Conditions Must Be Disclosed

Credit card companies must disclose all the terms and conditions that determine the cost of the credit card. Terms and conditions vary among different credit card companies competing for your business. You have the right to know if there are membership or participation fees, the annual percentage rate (APR), the finance charge, the late payment fee, the over-the-limit fee, the grace period, and the minimum payment.

Some credit card companies may not charge certain fees. Some credit card companies may not have a grace period or interest free period. Some credit card companies offer lower interest rates than others. That is why it is important that you review the terms and conditions of the credit card before you accept.

A certain credit card may not be a good deal when you are charged membership and/or participation fee. The fees may appear monthly, periodically, or as a one-time charge. The fees increases your cost of credit and reduces the amount of credit you have available. The fees have immediate effect on your available credit. For example, you are approved for a credit card with a $300 credit limit and you are charged a $75 fee, this leaves you with $225 available credit for your use, not $300.

You have a right to know about other fees that increase your cost of credit, such as transaction fee or cash advance fee, a late payment fee, and over-the-limit fee. A transaction fee is a charge placed on your credit card account when you use certain services, such as receiving a cash advance or using your credit card to receive cash from the ATM. A late payment fee is a charge placed on your credit card account when payment is not received by the due date. An over-the-limit fee is a charge placed on your credit card account when you made purchases over your credit limit. Depending on the amount of credit you are looking for, the credit card with a lot of fees may not be the one you choose.

Credit card companies have different annual percentage rate (APR). An annual percentage rate (APR) is the yearly cost of the credit card. It represents the total percentage of interest paid annually and all costs and fees associated with the credit card. For example, if you have spent a $1000 on your credit card and the APR is 15% and you pay off the $1000 over time then you will pay more interest than if you shop around and obtain a credit card with a APR that is less than 15%. Not only will you pay less but it will take you less time to pay off because the cost of the credit card is less.

There are different types of APRs. There are APRs when the low introductory interest rate expires. There are APRs when you do not make your payment on time. There are APRs for cash advances. There are APRs when you use credit card checks. There are APRs for purchases. There are APRs for balance transfers. The credit card companies are required to disclose the amount of each type of APR to you. If the credit card company increases your credit card’s APR the credit card company must tell you why there was an increase in APR.

In order to use your credit card without paying interest, you must first make sure that the credit card you are accepting has a grace period. The grace period is also known as the free period, which refers to the amount of time given to you to pay your credit card bill without incurring interest.

If the credit card has a grace period you are not charged interest from the date you make a purchase on your credit card. You are charged interest if the credit card account is not paid in full when you receive the statement.

For instance, if you made a purchase on your credit card a month before the statement date, and when you received your statement you are given a grace period for e.g. 25 days within which to make the payment, you have 1 month and 25 days where you are not charged interest. If you pay the full amount due that period when you receive the statement then you are not charged interest.

If there is no grace period, the credit card company will impose interest from the date the credit card is used, or from the date the purchase is posted on your account.

Knowing whether a credit card gives you a grace period is important if you plan to save money by paying your credit card bill in full each month. So if you expect to pay your entire credit card balance each statement period it would be a good idea to shop for a credit card that has the longest interest free/grace period.

Chapter 3

YOUR CREDIT REPORT AND CREDIT SCORE RIGHTS

Your credit report is a record of your credit activities and credit history. Your credit report rights include: the right to obtain free copies of your credit report every year; the right to dispute items in your credit report and have disputed items investigated; the right to know who has received a copy of your credit report; the right to have negative or adverse accounts removed from your credit report after a certain period of time; the right to complain to the appropriate authorities if your credit report rights are violated. You have a bundle of credit report rights.

Your credit score is derived from your credit report. Your credit score is a three digit number based on statistical analysis of your credit report.

The Information In Your Credit Report

Your credit report includes personal information about you. Your credit report contains your name, social security number, date of birth, current and recent addresses, current and previous employers. It also contains information about whether you have been sued, or filed for bankruptcy.

There is a limit to the personal information that may displayed in your credit report. The credit reporting bureaus are not permitted by law to disclose certain medical information relating to your physical, mental or behavioral health or condition. For example if you are making payments to a Cancer Center it should not be reported to others as the Cancer Center on your credit report, it may just be shown as medical payment without specifying.

Your credit report consists of details about credit accounts that were opened in your name or that list you as an authorized user of a credit account. The details about the credit account are supplied by the creditor with which you have an account. The information about your credit account includes the date the account was opened, the credit limit or amount of the loan, the payment terms, the balance, and a history that shows whether or not you paid the account on time. It shows whether your accounts are closed or inactive.

Your credit report contains information about your credit history. This information is gathered on an ongoing basis from many sources that have extended credit to you.

The Credit Reporting Bureaus That Supply Your Credit Reports

There are three major credit reporting bureaus in the U.S. There are Equifax, Experian, and Trans Union. Each credit reporting bureau presents your credit report as follows:

Equifax presents your credit report with the following categories: A) Credit summary-which list type of open accounts e.g. mortgage, installment, revolving, other, total number of each account, balance of of each type of open account, available credit of each type of open account, credit limit, debt to credit ratio, monthly payment of each type of account, number of accounts with balance, account age, inquiries, and potentially negative information. B) Account Information-detailed open account information such as account name, account number, date open, balance, type of account, term duration, date reported, date of last payment, scheduled payment amount, date major delinquency first reported, creditor classification, charge off account, status, high credit, credit limit, terms frequency, balance , amount past due, actual payment amount, date of last activity, months reviewed, status (e.g. pays as agreed) C) Installment Accounts. D) Revolving Accounts. E) Closed Accounts. F) Other Accounts. G) Payment History Key. H) Inquiries—A request for your credit history is called an inquiry. Inquiries remain on your credit report for 2 years. Inquiries that may impact your credit rating. Those inquiries are made by companies with whom you have applied for a loan or credit. Inquiries that do not have impact your credit rating. These inquires include requests from employers, companies making promotional offers and your own requests to

check your credit. These inquiries are only viewable by you. I) Negative Accounts-Accounts that contain a negative account status. Accounts not paid as agreed generally remain on your credit report for 7 years from the date the late payment. Late payment history generally remains on your credit file for 7 years from the date of the late payment. J) Collections-a collection is an account that has been turned over to a collection agency by one of your creditors because they believe the account has not been paid as agreed. K) Public Records-public record information includes bankruptcies, liens, or judgments and comes from federal, state, or county court records. L) Personal Information-name(s), social security number, age, or date of birth, addresses. M) Other Identification. N) Employment History. O) Alerts—e.g. fraud alerts to let potential creditors and others know you are a victim of identity theft. Initial fraud alert stays in file for 90 days. An extended fraud alert stays for 7 years. P) Consumer Statement-if you added a statement. Q) How to dispute file R) How to order your score. S) A Summary of Your Rights Under the Fair Credit Reporting Act. T) Remedying the Effects of Identity Theft. U) Your Rights Under State Law.

Experian presents your credit report in the following categories:-A) Accounts in Good Standing-these items may stay on your credit report for as long as open. Closed or paid off may appear on your report for up to 10 years. E.g. creditor name, address, account number, id number, status, date opened, reported since, date of status, last reported, your statement, type, terms, monthly payment, responsibility: individual/joint, status details: e.g.: This account is scheduled to continue on record until July 2018 (for closed or paid accounts), credit limit/original amount, high balance, recent balance, payment. B) Inquiries Shared With Others: They make your credit history available to your current and prospective creditors and employers. Experian may list inquiries for up to 2 years. List of companies that have requested your credit history as a result of an action you took, such as applying for credit or financing or as a result of collection. These inquiries are shared with companies that receive your credit history. C) Inquiries Shared Only with You: You may not have initiated the following inquiries, so you may not recognize each source. They report these requests to you only as a record of activities and don’t include any of these requests on credit reports to others. Those with permissible purpose: other creditors who want to offer you preapproved credit, an employer who wishes to extend an offer of employment, a potential investor in assessing the risk of a current obligation, Experian Consumer Assistance to process a report for you, your current creditor to monitor your accounts, an end user to complete your

mortgage loan application. These inquiries don’t affect your credit score. D) Personal Information. E) Important Message From Experian. F) Know your rights—FCRA Rights and States Rights.

Trans Union presents your credit report in the following categories: A) Personal Information-names, current and previous addresses, social security number (last four digits), date of birth, your telephone numbers, addresses, and employers, your spouse name. B) Account Information (satisfactory accounts and adverse accounts)—creditor name, address, account number, balance, date updated, high balance, credit limit, last payment, pay status, account type, responsibility, date opened, date paid terms, and date opened. C) Regular Inquiries-remain on report for 2 years. D) Account Review Inquiries—not displayed to anyone and does not affect credit or score. E) Consumer Rights.

Your Rights To Receive Free Credit Reports

The Fair and Accurate Credit Transactions Act (FACTA) gives you the right to receive a free copy of your credit report from each of the three national credit reporting bureaus. That means, you are entitled to one free credit report from Experian, and one free credit report from Equifax, and one free credit report from Trans Union every year. You are entitled to a total of (3) three free credit reports.

You have the option to request all three reports at the same time or to order each report at separate times. By requesting the credit report separately you can monitor your credit more frequently throughout the year.

Credit card companies are required to include a prominent notice across the top of their webpage that mentions free reports, declaring that the authorized source for free credit reports is the website Annual Credit Report.com. You are protected by law from misleading offers for a free credit report under The Credit Card Accountability and Responsibility and Disclosure Act of 2009.

Annual Credit Report.com is the only site authorized by federal law to provide you with a free copy of your credit reports each year. You may obtain your free credit reports by requesting it from the official government mandated site: on line at AnnualCreditReport.com; or by telephone at 1-877-322-8228; or by mailing your request to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia 30348-5281.

In addition, if you live in certain States you have the right to receive additional free credit reports. If you