What are Credit Laws?
Credit laws refer to a special category of state and federal laws that aim to regulate issues ranging from financial charges to extending pre-established lines of credit. Basically, if a financial institution or company is in the business of lending or offering credit to customers, then it most likely has to comply with various credit laws.
For example, a federal law known as the “Fair Credit Reporting Act (“FCRA”)” is responsible for protecting consumers from credit reporting agencies. Specifically, the Act grants consumers the right to request a copy of their credit reports. It also allows them to challenge errors within the report that could potentially prevent them from obtaining financial items related to credit, such as credit cards and/or loans.
Another important federal credit law is the “Fair Debt Collection Practices Act (“FDCPA”)”. It was enacted to protect consumers from being abused or harassed by third-party debt collectors.
The FDCPA contains a list of actions that debt collectors are prohibited from taking when attempting to collect debt. These include repeatedly calling a consumer to harass them about paying off their debts or intentionally reporting inaccurate amounts of debt to credit reporting agencies
Thus, if you believe your ability to obtain a loan or credit card has been harmed due to misinformation or an error contained in your credit report, you should consider contacting a local credit lawyer immediately for further guidance.
What Types of Matters Do Credit Lawyers Handle?
A credit lawyer is a lawyer who is qualified to assist consumers in repairing errors found in their credit reports, which in turn, can raise the level of their credit score or reinstate their accurate credit score amount.
Having a good credit score is important because it helps financial institutions and credit agencies to determine how much money (if any) to loan a consumer and decide whether a consumer is even eligible to receive access to credit (e.g., a credit card).
A credit lawyer is equipped to handle issues and disputes that arise between consumers and financial agencies. For example, if a consumer discovers a mistake in their credit report, a credit lawyer can communicate with a credit agency or credit bureau on the consumer’s behalf to resolve the issue.
Credit lawyers can also negotiate settlements with debt collectors, provide representation in court for disputes over credit and debt matters, and litigate other issues that come up regarding a consumer’s existing debt or credit report errors.
For instance, if a consumer has a negative credit history due to missed payments or tax liens, a credit lawyer can help the consumer to remove the information or clean it up.
What Is It Important to Have a Credit Attorney?
Credit attorneys can be a valuable resource for those who face debt collection issues or are involved in a credit dispute. As discussed above, having a good credit score is crucial for gaining access to a loan or being granted a line of credit. A credit attorney can help a consumer identify potential errors in their credit report, file disputes with the appropriate credit bureau, and represent them in court if they are being sued by a debt collector.
In addition, a credit attorney can provide advice to their clients on how to bolster their current credit score, continue improving their credit history, and identify potential scenarios where a credit agency or financial institution may have violated a credit law. A credit attorney can also tell a client when it may make more sense to use a credit repair company or resolve the issue on their own, as opposed to going to court and paying extra legal costs.
One final thing to note about credit scores is that having a bad credit history and/or score can often impact more than just the financial area of a person’s life.
They can also affect a consumer’s ability to buy a house, rent an apartment, get a loan to purchase or rent a vehicle, and in some cases, may even hurt their chances in securing a job at some companies or being admitted to certain graduate programs. Hence, why it is so important to hire a credit attorney to quickly resolve such issues.
How Do I Know if a Credit Lawyer is Right for Me?
Finding the right credit lawyer depends on a number of factors. For one, you need to hire a lawyer who not only handles credit and/or debt matters, but also practices law in your area.
Additionally, you should hire a credit lawyer whom you feel comfortable working with and that you can trust. Oftentimes, credit issues involve reviewing sensitive personal information, such as credit card statements, bankruptcy judgments, and your overall credit history. You would not want to hire someone whom you would feel the need to lie to or believe that they would not keep your financial information confidential.
Having a good working relationship with your credit lawyer can lead to a much more successful outcome than if you feel the need to hide things from them because you are uncomfortable or feel embarrassed. Remember, credit lawyers deal with these cases all the time and are highly trained professionals. They are there to help you resolve your financial issues and make life easier, not worse.
Therefore, you should search for a credit lawyer who is local, trustworthy, and has a proven track record in assisting with such matters.