Your Consumer Rights

At Veracity, we strictly abide by the 3 major acts created by the Federal Trade Commission. We are always conscious of your rights and it is important to know exactly where the law stands in regards to collecting debt, reporting credit, and credit repair.

Fair Credit Reporting Act

This was passed by Congress to protect the consumer from inaccurate information on your credit report. It allows the consumer to challenge the accuracy and legitimacy of the data which includes bankruptcies, charge-offs, collections, foreclosures, judgments, late payments, tradelines, repossessions and tax liens. You should also look for incorrect personal information such as incorrect names, birth dates, addresses, former addresses, social security numbers, aliases, spouses name, etc.

The act also provides a means to a free annual credit report and the ability to place a fraud alert on your credit report to protect you from identity theft. If you are unsatisfied with the dispute process with the bureaus and feel you have been wronged, you may seek a maximum of $1000 in statutory damages, plus actual damages, punitive damages and reasonable attorney's fees and costs for willful noncompliance with the Act.

http://www.ftc.gov/os/statutes/031224fcra.pdf (Fair Credit Reporting Act)

Access your free annual report by visiting https://www.annualcreditreport.com/cra/index.jsp.

Fair Debt Collections Practices Act

This was enacted by Congress because of the negative tactics being employed by collection companies.

Collection company restrictions

  • Contacting a third party who does not owe the debt, such as a relative, neighbor, or your employer (If you have a co-signers to any debt, they may be contacted by the debt collector)
  • Threatening to refer your account to an attorney, harm your credit rating, repossession or garnishment, without actual intention of action on the threat. The wrongdoing comes from the false statement. The collection company can get an attorney involved which could potentially lead to the aforementioned account problems.
  • Under the FDCPA, collectors may not call you before 8:00 am or after 9:00 pm unless you give them permission
  • Calling you at your place of employment
  • Avoid disclosing their identity and affiliation to the debt
  • Using obscenity, racial slurs or insults
  • State that you have committed a crime
  • Sending letters that falsely appear to have come from a court
  • Seeking collection fees or interest charges not permitted by your contract or by state law
  • Requesting post-dated checks with the intention to prosecute if they bounce
  • Suing in courts far removed from your place of residence
  • Make a false claim that the person contacting you in relation to the debt is an attorney
  • Falsely claiming to have started a lawsuit
  • Using a false name
  • Using stationery that is designed to look like an official court or government communication
  • Threatening you with arrest if you do not pay the debt

When validating debts, debt collectors must, within five days of the initial communication with the debt collector:

  • Disclose the amount of the debt
  • Disclose the name of the original creditor
  • Have a statement in the communication that states:
    "Unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;"
  • Have a statement in the communication that states:
    "If the Consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment will be mailed to the consumer by the debt collector"
  • Have a statement in the communication that states:
    "Upon the consumer's written request within the thirty-day period, the debt collector will provide the name and address of the original creditor, if different from the current creditor;"
  • Not contact you if you have disputes or requested verification of your debt

This was enacted by Congress because of the negative tactics being employed by collection companies.

What To Do If A Collector Has Broken A Law

If you experience a violation by a collector you have every right to sue them in a state or federal court. If you win the lawsuit you are entitled up to $1,000, court costs, attorney fees, and damages established by the court. The best thing to do is to do one of the following:

  • Contact your state Attorney General
  • Contact the FTC
  • Contact a local attorney

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf (Fair Debt Collections Practices Act)

Credit Repair Organizations Act

This law was put into place to protect the consumer from credit repair scams. We follow this act fully and even have our staff trained in CROA to ensure that we are completely compliant.

An Overview of the Act

In general - No person may make any statement, or counsel or advise any consumer to make any statement, which is untrue or misleading (or which, upon the exercise of reasonable care, should be known by the credit repair organization, officer, employee, agent, or other person to be untrue or misleading) with respect to any consumer's credit worthiness, credit standing, or credit capacity to any consumer reporting agency.

Any person - who has extended credit to the consumer; or to whom the consumer has applied or is applying for an extension of credit; make any statement, or counsel or advise any consumer to make any statement, the intended effect of which is to alter the consumer's identification to prevent the display of the consumer's credit record, history, or rating for the purpose of concealing adverse information that is accurate and not obsolete to-

Any consumer reporting agency; any person - who has extended credit to the consumer; or to whom the consumer has applied or is applying for an extension of credit; make or use any untrue or misleading representation of the services of the credit repair organization; or engage, directly or indirectly, in any act, practice, or course of business that constitutes or results in the commission of, or an attempt to commit, a fraud or deception on any person in connection with the offer or sale of the services of the credit repair organization.

Payment in Advance - No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed.

Cancellation - Each state has its own right of rescission period which is no less than 3 business days in which the consumer can cancel the service before the initial payment is authorized

http://www.ftc.gov/ro/chro/croa1.shtm (Credit Repair Organizations Act)

Build Your Credit with a
    Secured Credit Card

With a secured credit card, you can:

  • Use it wherever major cards are accepted
  • Make purchases online or over the phone
  • Establish a secured line of credit that will help increase your credit score

Learn More

Get a FREE Credit Consultation.

Call 1-866-518-2194 or click here.

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