Debt Help: You Still Have Rights

The minute you sign a charge slip for a credit card, or take out a loan, you become a debtor. You are now dealing with a creditor(s), and all the myriad problems that may arise, from late payments as a result of mail problems, to the fastest growing crime in America- identity theft. Soon you may realize that you need debt help, so that you can become debt free and on the road to debt recovery.

You as a debtor have rights under the law. These laws are intended to help you become debt free. If you have already used, or are planning on using credit of any kind, or incurring a debt, be familiar with those rights. The road to debt recovery can be long and frustrating, but with the right debt help you can again become debt free. You will have to make some sacrifices though. But again, you do have certain rights.

You have the right to know what your credit report says about you. That report may contain mechanical or personal input errors in the data, such as late payments when there weren’t any. It may show that you are a victim of credit card fraud, where you have been impersonated and debts incurred in your name.

Consider just how many people see that credit report. If you apply for a credit card, the issuer sees the credit report. If you apply for a job, the potential employer sees the credit report. Applying for a mortgage? The bank will see it too. There are even “notification services” subscribed to by creditors. These services will let them know when you are falling behind on other bills, even if you are current with that creditor.

You have the right to know who has requested your file. The credit bureau must provide you with the name of the company/individual who requested the file, and their contact information.

In cases where credit is denied, you are entitled to a reason why, plus the name of the credit reporting bureau that made the report.

You have the right to a complete and accurate report. If you discover errors on your report, you are entitled to ask the Credit Reporting Bureau to correct it. A time limit is established by the Fair Credit Reporting Act, for both creditors and credit bureaus to investigate and correct erroneous reports. They are then obligated to send the correction to all three credit reporting agencies.

You have the right to make a statement about your report. If there is an item under dispute, perhaps a bill you paid, but the creditor claims you haven’t, you have the right to file a statement with the credit bureau. This must be attached to your report, and distributed to anyone asking for a copy, in which they will also receive the negative information from the creditor.

You have the right to confidentiality. Despite the fact that so many people do see your file, including those applied to for credit, insurance, or employment, a credit bureau may not give out your personal information for non-business purposes.

You have the right to start over. Bad debts, late payments, and other negative information must be removed after seven years. A bankruptcy will remain on your record for ten years. But if you have already been down the debt recovery rode and have taken care of your problems, make sure you let your credit report know.

You have the right to bring legal action against a credit bureau. Inaccuracies in your report that are not removed and explained to potential creditors, may give you grounds to sue the credit bureau. Remember though, that it is a long, difficult and expensive process.