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to analyze. If you're questioning a credit refusal made within
the past 30 days, the bureau is not allowed to charge a fee for
giving you information.
Any error that you find must be investigated by the credit
bureau with the creditor who supplied the data. The bureau will
remove from your credit file any errors the creditor admits are
there. If you disagree with the findings, you can file a short
statement in your record giving your side of the story. Future
reports to creditors must include this statement or a summary
of it.
Old Information. Sometimes credit information is too old
to give a good picture of your financial reputation. There is a
limit on how long certain kinds of information may be kept in
your file:
-- Bankruptcies must be taken off your credit history after
10 years.
-- Suits and judgments, tax liens, arrest records, and most
other kinds of unfavorable information must be dropped
after 7 years.
Your credit record may not be given to anyone who does not
have a legitimate business need for it. Stores to which you are
applying for credit or prospective employers may examine your
record; curious neighbors may not.
Billing Mistakes. In the next chapter, you will find the
steps to take if there's an error on your bill. By following
these steps, you can protect your credit rating.
OTHER ASPECTS OF USING CREDIT
The best way to keep up your credit standing is to repay
all debts on time. But there may be complications. To protect
your credit rating, you should learn how to correct mistakes
and misunderstandings that can tangle up your credit accounts.
When there's a snag, first try to deal directly with the
creditor. The credit laws can help you settle your complaints
without a hassle.
What Laws Apply?
FAIR CREDIT BILLING ACT sets up procedures requiring
creditors to promptly correct billing mistakes; allowing you to
withhold payments on defective goods; and requiring creditors
to promptly credit your payments.
IN LENDING gives you three days to change your mind about
certain credit transactions that use your home as collateral;
it also limits your risk on lost or stolen credit cards.
Billing Errors
Month after month John Jones was billed for a lawn mower
he never ordered and never got. Finally, he tore up his bill
and mailed back the pieces--just to try to explain things to a
person instead of a computer.
There's a more effective, easier way to straighten out
these errors. The Fair Credit Billing Act requires creditors to
correct errors promptly and without damage to your credit
rating.
A Case of Error. The law defines a billing error as any
charge:
-- for something you didn't buy or for a purchase made by
someone not authorized to use your account;
-- that is not properly identified on your bill or is for an
amount different from the actual purchase price or was
entered on a date different from the purchase date; or
-- for something that you did not accept on delivery or that
was not delivered according to agreement.
Billing errors also include:
-- errors in arithmetic;
-- failure to show a payment or other credit to your account;
-- failure to mail the bill to your current address, if you
told the creditor about an address change at least 20 days
before the end of the billing period; or
-- a questionable item, or an item for which you need more
information.
In Case of Error: If you think your bill is wrong, or want
more information about it, follow these steps:
1. Notify the creditor in writing within 60 days after the
first bill was mailed that showed the error. Be sure to write
to the address the creditor lists for billing inquiries and to
tell the creditor:
-- your name and account number;
-- that you believe the bill contains
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