Credit - You Have The Right To...
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Credit: Know Your Rights
Understanding your credit rights is essential. There are laws designed to protect you, but you need to be aware of them to benefit.
Your Credit Rights
- Name Choice: You can obtain credit using your birth name (e.g., Mary Smith), your first name with your spouse’s last name (Mary Jones), or a combined last name (Mary Smith-Jones).
- Independent Credit: If you meet a creditor’s standards, you have the right to apply for credit without a cosigner.
- Cosigner Options: If a cosigner is needed, you aren’t limited to choosing your spouse.
- Maintain Your Accounts: You can retain your accounts after changing your name, marital status, reaching a certain age, or retiring, unless the creditor can prove you can’t or won’t repay.
- Application Status: You have the right to know if your credit application was accepted or rejected within 30 days of submission.
- Rejection Reasons: Creditors must provide a specific reason for rejection or inform you of your right to know the reasons within 60 days. Valid reasons include “low income” or “insufficient employment history.” Vague reasons like “did not meet standards” are not acceptable.
- Less Favorable Terms: If you’re offered less favorable terms, such as higher interest rates, you have the right to inquire why.
- Account Changes: You can ask why your account terms were changed or why it was closed unless it was due to inactivity or delinquency.
Special Note for Women
A good credit history is crucial for obtaining credit, but many women face challenges due to shared accounts in a husband’s name or lost credit history after marriage name changes. If you are married, divorced, separated, or widowed, ensure your credit information is correctly filed under your own name by consulting local credit bureaus.
If You Suspect Discrimination
- Communicate: Notify the creditor if you believe discrimination occurred. They may rectify the situation if they are aware of the law.
- Legal Options: Check with your state’s Attorney General regarding state-specific credit opportunity laws. You may also consider filing a federal district court case to recover damages, including attorney fees. An attorney can guide you.
- Class Action Possibilities: Consider joining with others to file a class action lawsuit, which could lead to punitive damages up to $500,000 or one percent of the creditor’s net worth.
- Report Violations: Denied credit applicants should report issues to the designated government agency provided by the creditor. While individual complaints might not be resolved, this information helps guide investigations.
By knowing and exercising your credit rights, you can ensure fair treatment and make informed financial decisions.
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