Getting Credit Help

If you feel you're being unfairly treated concerning your credit, you can invoke your rights by filing a complaint and contacting the Federal Trade Commission or your state agency. It always helps to have a witness or some documented proof to verify your claim.

Tips for Getting the Results You Want
Before you blow-up and go into a place of business and start shouting, sit down and figure out exactly what happened and what you want them to do about it. (Do you want a replacement product, an apology, a refund?)

Before you contact federal or state government office for help, you should make the effort to solve the problem yourself. Following the outline below can help you save time and hassles.

• First let the business know you have a problem. Talk to the business owner, manager, main office or whoever is in charge.
• Be clear about your problem and ask the business to remedy the situation. Be specific about the action you want the business to take.
• If your issue is not resolved, follow up with a letter — that way you have a record of your request. Be sure to refer to your initial conversation in the letter.

Keep copies of all correspondence. Also keep all original receipts, cancelled checks and credit card statements. If a business needs to see your documents, provide a copy—never an original.

If you do not have records, start keeping them:

• Keep a copy of all letters and correspondence.
• Keep a log of all calls and conversations with the company and include the date and the time of the call, what was said and the name of the person with whom you spoke.

If you don't get results, contact your federal or state government agency.

Compile here is a list directory of federal and state agencies equipped to handle your complaint. They also have online many consumer resources with could benefit and protect your life and your families.

Federal Trade Commission
Agency
Consumer Protection
File a Complaint


Government Agencies By State - alphabetical order

Alabama
Office of Attorney General
Consumer Protection
File a Complaint

Alaska
Office of Attorney General
Consumer Protection
File a Complaint

Arizona
Office of Attorney General
Consumer Protection
File a Complaint

California
Office of Attorney General
Consumer Protection
File a Complaint

Colorado
Office of Attorney General
Consumer Protection
File a Complaint

Connecticut
Office of Attorney General
Consumer Protection

Delaware
Office of Attorney General
Consumer Protection

District of Columbia
Office of Attorney General
Consumer Protection
File a Complaint

Florida
Office of Attorney General
Consumer Protection
File a Complaint

Georgia
Office of Attorney General
Consumer Protection
File a Complaint

Hawaii
Office of Attorney General
Consumer Protection
File a Complaint

Idaho
Office of Attorney General
Consumer Protection
File a Complaint

Illinois
Office of Attorney General
Consumer Protection
File a Complaint

Indiana
Office of Attorney General
Consumer Protection
File a Complaint

Iowa
Office of Attorney General
Consumer Protection
File a Complaint

Kansas
Office of Attorney General
Consumer Protection
File a Complaint

Kentucky
Office of Attorney General
Consumer Protection
File a Complaint

Louisiana
Office of Attorney General
Consumer Protection
File a Complaint

Maine
Office of Attorney General
Consumer Protection
File a Complaint

Marshall Islands
Office of Attorney General

Maryland
Office of Attorney General
Consumer Protection
File a Complaint

Massachusetts
Office of Attorney General
Consumer Protection
File a Complaint

Michigan
Office of Attorney General
Consumer Protection
File a Complaint

Minnesota
Office of Attorney General
Consumer Protection
File a Complaint

Minnesota
Office of Attorney General
Consumer Protection
File a Complaint

Missouri
Office of Attorney General
Consumer Protection
File a Complaint

Montana
Office of Attorney General
Consumer Protection
File a Complaint

Nebraska
Office of Attorney General
Consumer Protection
File a Complaint

Nevada
Office of Attorney General
Consumer Protection
File a Complaint

New Hampshire
Office of Attorney General
Consumer Protection
File a Complaint

New Jersey
Office of Attorney General
Consumer Protection
File a Complaint

New Mexico
Office of Attorney General
Consumer Protection
File a Complaint

New York
Office of Attorney General
File a Complaint

Consumer Protection
File a Complaint

North Carolina
Office of Attorney General
Consumer Protection
File a Complaint

North Dakota
Office of Attorney General
Consumer Protection
File a Complaint (form)

Northern Mariana Islands
Office of Attorney General

Ohio
Office of Attorney General
Consumer Protection
File a Complaint

Oklahoma
Office of Attorney General
Consumer Protection
File a Complaint

Oklahoma
Office of Attorney General
Consumer Protection
File a Complaint

Oregon
Office of Attorney General
Consumer Protection
File a Complaint

Pennsylvania
Office of Attorney General
Consumer Protection
File a Complaint

Puerto Rico
Office of Attorney General

Rhode Island
Office of Attorney General
Consumer Protection
File a Complaint (form)

South Carolina
Office of Attorney General
File a Complaint

South Dakota
Office of Attorney General
Consumer Protection
File a Complaint

Tennessee
Office of Attorney General

Texas
Office of Attorney General
Consumer Protection
File a Complaint

Utah
Office of Attorney General
Consumer Protection
File a Complaint (email)

Vermont
Office of Attorney General
Consumer Protection
File a Complaint (email)

Virgin Islands
Office of Attorney General

Virginia
Office of Attorney General
Consumer Protection
File a Complaint

Washington
Office of Attorney General
Consumer Protection
File a Complaint

West Virginia
Office of Attorney General
Consumer Protection
File a Complaint

Wisconsin
Office of Attorney General
Consumer Protection
File a Complaint

Wyoming
Office of Attorney General
Consumer Protection
File a Complaint (request form by email)

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Non-Profit Organization and Advocate

Consumer Action
Organization
Consumer Protection
File a Complaint
An education and advocacy organization specializing in credit, finance, and telecommunications issues, Consumer Action offers a multi-lingual consumer complaint hotline, free information on its surveys of banks and long-distance telephone companies, and consumer education materials in as many as eight languages. Community-based organizations can receive these free publications in bulk.

Consumer Federation of America (CFA)
Organization
CFA is a consumer advocacy and education organization. It currently represents consumer interests on issues such as, telephone service, insurance and financial services, product safety, indoor air pollution, health care, product liability, and utility rates. It develops and distributes studies of various consumer issues, as well as consumer guides in book and pamphlet form. In addition, CFA publishes several newsletters.

HALT:An Organization of Americans for Legal Reform
Organization
HALT's mission is to enable Americans to handle their legal affairs affordably, equitably, and simply. HALT publishes a series of self-help legal manuals, operates a legal information clearinghouse, and advocates for legal reforms which will benefit consumers.

National Association of Consumer Agency Administrators (NACAA)
Organization
An association of the administrators of local, state, and Federal Government consumer protection agencies, NACAA provides training programs, public policy studies and conferences, professional publications, and other member services.

National Consumer Law Center (NCLC)
Organization
NCLC is an advocacy and research organization focusing on the needs of low-income and elderly consumers. Limited resources prevent the organization from responding to individual inquiries. The Center publishes Surviving Debt: A Guide for Consumers. NCLC Reports, a newsletter on consumer law developments, is published 24 times a year.

Who's who in the credit world

The Federal Trade Commission (FTC)
This is die federal agency in charge of anything to do with credit (along with many other aspects of our economy). You can send them written complaints, particularly if you cant resolve a dispute with a credit bureau or card issuer. The national office is in Washington, DC., and there are regional offices in Atlanta, Boston, Chicago. Cleveland. Dallas, Denver. Los Angeles. New York, San Francisco, and Seattle.

Creditors
These are the people to whom you owe money. A secured creditor is someone who extends you credit in return for your pledge that they can sell designated property of yours if you fail to repay the loan properly. An unsecured creditor is still entitled to be repaid somehow, but doesn't have the right to take and sell any specific property.

Credit guarantee company
When the store clerk runs your card through its machine, the clerk is contacting a credit guarantee company. This company, a liaison between the card issuer and the store, sends back the status of your credit to let the clerk know whether to make the sale, reject it. or even keep your (arc! so you can't use it anymore.

Merchant banks and issuing banks
When you buy, something using a card from Visa or MasterCard, the seller receives its payment from a "merchant' bank (minus a service fee that's typically 1%, to 6%, of your purchase). !'he merchant bank then is reimbursed by the "issuing'' bank (minus a service fee that's typically 1% or 2%) - The issuing bank is the one who issued you the card and the one who sends you a monthly statement requesting payment.

Visa and MasterCard
These competing organizations don't issue credit cards. They provide operational and marketing support for the banks who issue their cards. The banks are allowed to set their own credit terms, including the interest rate, grace period, and annual fee, as long as they stay within the guidelines of their member organization. Beside generating income from consumers Visa and MasterCard also charge merchants a percentage of each purchase made with their card.

Bankruptcy

Your creditors will be more interested in finding a way to get back their money than in forcing you into bankruptcy. But bankruptcy is an acceptable legal process that seeks the best resolution for you and your creditors. Although it's preferable to avoid the intrusion, stigma, and future credit problems that bankruptcy brings, sometimes it's the best solution. Once you apply to the courts, all collection efforts against you must stop, you're not allowed to take on new debts, and your assets are frozen.

You have two options:

Ask for a plan
You can apply for Chapter 7 bankruptcy. Here, you ask the court to create a workable plan and to carry it out. Your assets are frozen and a court-appointed person ('trustee") takes control of your finances. The trustee's job is to analyze your assets, income, and debts, then create the plan to distribute your assets to creditors as fairly as possible and in an orderly manner.

Usually, you'll he allowed to keep a certain amount of "exempt" assets in order to maintain a reasonable, modest lifestyle. Your income is usually protected so you can continue to support your family.

Once your assets have been distributed, the balance of your debts will be forgivenexcept for certain obligations, such as child support, alimony, and criminal liability. So, depending on your circumstances, you could he debt-free; although you'll have a damaged credit record that will take time to rebuild.

The process
1. Good professional guidance is advisable, but there are also self filing forms available from books or the local court. (Filing fees are around $200.1 You may file for Chapter 7 only every six years. There's no limit on filing for Chapter 13.)

2.You'll be asked to provide verification of

• income and property owned
• debts
• monthly living expenses
• property you're claiming as exempt

3. After you've tried, you'll attend a "creditors' meeting." Here, creditors can state their cases before the trustee, who then decides what's to he done. Since there usually isn't enough money for everyone, creditors accept a fraction of what they're owed.

4. A bankruptcy stays on your credit report for 10 years. When you begin applying for credit again, some lenders-but not all-will consider you too great a risk. By using tools such as secured credit cards, you can gradually rebuild a positive credit profile.

Create your own plan
Applying for Chapter 13 protection is similar to Chapter 7, but gives you more flexibility to resolve your debts as you see fit.

After filing, you present the court with your own scheme to repay your creditors, usually within three to five years. Generally. you must pledge all your disposable income (what's left after reasonable fixing expenses) to then plan.

If the court accepts your plan, you'll make you, payments to the court-appointed trustee, who will monitor your situation and distribute the money to your creditors. At the end of the process, you'll I w allowed to keep your remaining property, all cI the balance of any debts will he wiped out (unless, by law, they can't be discharged).

If the court doesn't accept your plan, you may he able to submit another plan or switch to Chapter 7.

What's protected, what's not. Some debts are dischargeable (they'll be forgiven even if you don't repay in full). Some assets are exempt (they can't be used to repay debt). Here are some examples of dischargeable and exempt assets in some states; be sure to consult an attorney.


DEBTS:
Dischargeable
back rent, utility bills,
personal loans,
legal or accounting fees,
court judgments

Cannot be discharged
alimony, credit card charges,
child support, tax obligations,
student loans, medical bills,
fines

ASSETS:
Exempt
your main car, tools of your trade, food, clothes, family heirlooms

Not exempt
luxury items, limited personal property, investments, cash


Notes:
Secured loans. Creditors with secured loans loans for which you've specifically pledged your home, car, or other property) are first in line to be repaid from the sale of that property.

Fraud warning. Some people try to use courts to avoid debts. It you've transferred property, withdrawn lots of cash, or bought luxury items immediately prior to filing, a court will investigate the possibility of fraud.

Handing too much credit debt

Sometimes we just can't get out of debt. Situations beyond our control can arise and overwhelm us. Uninsured medical bills, a loss of business, or unemployment can happen to anyone. The natural reaction may be to cover your head and hide, but you'll usually be offered help if you genuinely try to remedy the situation.

There are three options:

Talk directly with creditors
The people to whom you owe money (your creditors) are motivated by two needs: to be repaid and to keep you as a customer. This tends to work in your favor.

Legally, as soon as you default on a debt (e.g., make a late payment), the creditor has the right to ask you to repay the entire debt. That rarely happens because the creditor is interested in building a relationship with you and selling more products or services. Most creditors, therefore, will listen if you ask for help in structuring a new repayment plan. For example, they may grant an extension of time or reduce payment amounts (and increase the number of payments).

If you're late paying, creditors typically send you form letters as polite reminders. If you still don't pay, they send letters with increasing intensity, or they call you on the phone. Eventually, a creditor will make demands, backed by the threat of action (such as a lawsuit or collection process).

Get outside help
If you work directly with a creditor, you could enlist help from:

A local credit counseling service. Find a service that is associated with the Consumer Credit Counseling Service (CCCS), a non-profit organization supported partly by the credit industry. For a small fee, a counselor acts as a go-between with your creditors and helps set up a workable repayment plan.

Mediation. Becoming more popular is the use of a neutral third party to help you and the creditor open a line of communication and resolve your own dispute. It's very informal; the mediator can't three either side to do anything.

Arbitration. You and the creditor can agree to argue before a neutral third party (often a lawyer or judge). If it's not for a lot of money, the process is informal and probably doesn't require a lawyer. Both you and the creditor are bound by the decision (and the winner may also win a refund of the arbitration fee).

Deal with bill collectors
The last resort of any credit other than suing you (which may not be economically feasible), is to hand over your debt to a collection agency. These people aren't interested in keeping you as a customer. They're paid for results and have one goal: to recoup as much debt as they can.

Your rights. Bill collectors are restricted by the Fair Debt Collection Practices Act, which applies to everyone who collects consumer debt for someone else, including attorneys. Here are some laws:

• You have the right to tell collectors not to contact you again. After that they can only call to say collection efforts have ended or that you're going to be sued.

• They can't threaten violence or use obscene or profane language.

• They can't contact you at work, and they can only call you at home between S am anti 9 put. Even then, they can't pester you on the phone.

• They can't put any markings on the outside of a letter or postcard that would reveal they're trying to collect a debt.

• They can't mislead you into repaying a debt.

Note:
Help from the government. If you feel you're being treated unfairly, you can invoke your rights by contacting the Federal Trade Commission (2O2-326-2222). It always helps to have a witness or some documented proof to verity your claim.

Debt consolidation. Debt consolidators-businesses that charge a fee to combine your debts and help you manage paying them off-are prohibited in most states and regulated in others. Apparently, most of these businesses are really looking to find ways to charge you high interest and fees. Non-profit organizations are exempt from these state laws.

A word to the wise – Buyer beware

The credit world is ripe for unscrupulous people because so many credit transactions are conducted over the phone and through the use of unfair, misleading, or illegal practices.

Pre-approval / Guaranteed approval
Some ads guarantee you'll he approved for a card no matter what your credit history or how much you deposit in a special account. These should he reported to your state's consumer protection agency. Also, he suspicious of people who want a fee for getting you a card. You could do it yourself.

Another caution: Some guarantees cad up being approvals for a tiny credit limit (e.g., $100). The issuer then checks your credit profile and, if it shows problems, refuses to raise your limit.

Don't write, don't phone
Many businesses want your address or phone number for their mailing lists, or to sell to a direct mail company. Most card issuers, however, forbid this practice. Also, in many states it's illegal for stores to write your credit card number on your check. Some experts recommend you don't let anyone write down your driver's license number if it's also your social security number.

Minimums and discounts
This isn't unfair, misleading, or illegal, but it's valuable to know: MasterCard and Visa don't let stores require minimum purchases. American Express follows the same policy if the store also takes Visa or MasterCard. Discover does permit it.
In some states, stores can offer a discount if you pay in (ash. But they can't charge more than the retail price if you use a card.

Where to complain
If you think a store has been unfair, you can report them to your state or city consumer protection office or attorney general. Diners Club and American Express want to know about violations of their rules. For problems with Visa or MasterCard, start with a call to the bank that issued your card; if there's no satisfaction, try Visa or MasterCard themselves.

Phone calls
Experts say that people who call and ask for your credit card number or send a postcard and ask you to respond are probably scamming you, even if they sound legitimate.

Close but no cigar
Some ads offer cards that look a lot like a Visa or MasterCard but are merely gold-colored cards you can use only to shop through a specific catalogue-often at higher prices. Look for the Visa or MasterCard logo to be sure of what's offered.

Contests and promotions
There are many scams (and legal but misleading marketing campaigns) that "guarantee" you've won a prize "with no obligation to buy," or offer "tremendous discounts" if you call right away. These people are usually either trying to get your credit card number so they can use it or slowly lure you into using your card to buy their product (at an inflated price and which you may never receive). This is a big problem area for law enforcement and consumers. The offers seem so tempting that people want to believe they'll win something for free, despite their better judgment.

Credit consultants
Some people calling themselves consultants or credit repair experts charge a lot to do what you could easily do yourself or what shouldn't be done at all. For example, they may dispute accurate items on your credit report to see if they can find a way to have the items removed. Their disputes could end up causing you more trouble instead of less, and cost high fees.

Special fees
Some card issuers charge a fee every time you check your balance or request other information through their toll-free customer service phone line. Ask about special fees when applying.

Application information
By federal law, anyone offering a card must display a table with certain basic information, including the annual percentage rate (APR), annual fee, and grace period. If you can't find it, be suspicious.

Note:
Fraud victim assistance. Trans Union has a department dedicated to investigating potential frauds. If you think you've been a victim, call 1-800-680 7289.

Knowing your credit card rights

The Fair Credit Billing Act protects you from both honest errors and outright fraud by merchants when you buy something using a creditor travel and entertainment (charge) card. You don't receive as much protection, though, when using debit cards, such as an ATM card, that take money directly from your bank account.

Three of the most important safeguards are against:

Billing errors
If you find what you think is an error on your statement, you can withhold payment on the amount (or ask for a credit if you've already paid) while the card issuer investigates the problem. You must notify the customer service department (not the department where you send your bills) in writing within 6o days of the billing date (also called the closing date). A phone call won't protect your rights. The billing date appears on the front of each statement.
Once notified, the card issuer has up to 30 days to respond to you and up to 90 days to resolve the problem. If there's no resolution within 90 days, you can deduct $50 from the amount even if you lose the dispute. Include any evidence, such as receipts, that support your claim.

Defects or disputes
By law, every product must work properly if used for its intended purpose. When you use a card, you get "buyer protection" help against charges that are:
• above the agreed-upon price
• for items ordered but never sent
• for merchandise you didn't order
• for things that don't work as they're supposed to
• for unsatisfactory services

First, you must try to resolve the issue directly with the seller. If that doesn't work, you can refuse to pay the bill and ask the card issuer to step in. The card issuer must try to resolve the problem within 90 days. If it takes longer, you may not be liable for the charge at all.

Buyer protection applies to purchases over $50 made in your home state or within too miles of your mailing address. (If the card issuer is connected to the product, there are no restrictions.)

Unauthorized use of the card
Once you report a card lost or stolen, you're not liable for an purchases or cash advances made without your consent. In any event, as long as you report the card missing within a reasonable time (e.g., 30 days), you're only liable for up to $50. The phone number to call to report a lost or stolen card is on the hack of every statement.

Many card issuers offer a lost or stolen card protection service for a fee (typically between $1 and $45 a year). When considering whether this service is worth the fee, keep in mind your liability is limited by law to $50 anyway, as long as you call your card issuer quickly.

The effect of disputes on your credit
During a dispute, the card issuer isn't permitted to report the amount to a credit bureau as a delinquent payment, and no collection agency can come after you. The issuer can continue to tally interest charges against the amount (in case you end up owing it), and they can apply the amount to your credit limit.
If the situation isn't settled to your satisfaction, you can notify the issuer in writing within 10 days. That will give you extra protection, because if they report it as a non payment, they'll be required to report your side of the story as well.

Notes:
No to annual fee. Card issuers are legally required to show the annual fee on the statement in the period before it's due, so you can decide whether you want to pay it. If you decide not to pay) you're asked to cut up the card and return it. You can still use the card until the end of the billing period. The issuer will continue to bill you monthly until you repay what you owe.

Card blocks. Some hotels put a "block" on your credit card for an amount they estimate you'll spend during your stay. Some car rental companies do the same,) Then they sometimes don't release the funds until weeks later, if you don't discover the block, you could be at a store and have your credit refused because you're at your credit limit. You have the right, however, to insist that a block be lifted when you check out of a hotel or return a car

ATM cards are different. You have 60 days from the date on your statement to report a billing error. Here's the law for reporting lost or stolen cards: If you notify the bank within 2 business days, you're liable for up to $50. If you notify them within 60 days, you're liable for up to $500. After that, your liability is unlimited until you report the card stolen.

What's in a loan

The reason for having credit is to get a loan when you need it. A loan can be large or small; It can be instantly available through a card or it can require your signing a complicated set of documents. And although different kinds of loans come with different terms, virtually every credit agreement covers four key points:

How much you can borrow
The amount you borrow is called the "principal." Sometimes you borrow the principal all at once. Other times, with credit cards for example, you have a "line of credit" that lets you borrow up to your "credit limit" at any time.

With credit cards and charge cards (where you pay in full each month and aren't charged interest), any principal you repay becomes available to be borrowed again-as long as your credit remains in good standing. This agreement to let you borrow, repay, and borrow again is called "revolving credit."

In a loan document on most card statements, you may see the words “amount financed.” It simply means the amount you borrowed.

How much it will cost
The most common cost of a loan is the interest (sometimes called a "finance charge"). Usually, your payments are split—part goes to repay what you borrowed and part goes to pay the interest.

There may also be fees of various kinds. Many card issuers charge annual fees similar to dues) that they sometimes waive for special promotions or upon request. Many also charge fees for cash advances. Lenders of mortgages usually charge upfront interest called "points" and other, connected fees for appraisals, closing costs, and more.

Every lender is required to show you the annual percentage rate (APR). It takes into account the interest plus certain fees to show the actual cost of the loan for the first year.

The payment plan
A payment plan has three parts: the length of time you're given to repay the loan, the schedule of payments, and the amount of each payment.

Charge card issuers give you the shortest time-3o or 6o days. Mortgage lenders give you the longest-up to 30 years. Credit card issuers let you take as long as you like, if you always make the minimum payment required.

Although there are many different repayment schedules, the most common is once a month. Your payment amounts may be "fixed" (stay the same each time) or "adjustable" (change according to a formula at periodic intervals.

What if you don't repay
Failing to repay on schedule can put you in default. The lender is then faced with finding another way to be repaid. If your credit report shows you to be a risk, the lender will want "security." In a secured loan, you give the lender the right to sell specific property (called the "collateral") if you default. In this way, you give the lender a sense of security, which makes it easier for him or her to say "yes" to the loan.

Usually, the collateral is the property you're buying with the loan, such as a car, home, or large household item. But lenders can also ask borrowers to pledge an unrelated item of value. (The item chosen is negotiable, and you have to weigh the risk of losing that item against your need for the loan. The law also protects you from being forced to pledge certain necessities.)

By law

• Limits on security. By law, creditors can't ask you to pledge as security any clothes, furniture, or other personal belongings unless they're the actual items you're buying on credit. Also, if your car is repossessed, you're entitled to anything left in it (although you may only have this right if you call within 24 hours).

Articles

A credit series that enables your time, money, and intelligence.

The big picture
The concept of credit
Your credit profile
The credit reporting system
Protecting your credit
What's in a loan
Types of loans
Different cards, different credit
Understanding your credit card statement
Knowing your credit card rights
How credit card payments work
Using the credit you've got to get more
A word to the wise – Buyer beware
Handing too much credit debt
Bankruptcy
Who's who in the credit world
Getting Credit Help