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Building a good credit history is extremely important. The way you handle your credit has a big impact on your way of life, your career, the way you conduct business with others, and even on the place where you live. Employers, money lenders, property owners, and business owners can all consult your credit history when determining whether or not to do business with you.

For this reason, you need to learn how credit is given and why it is rejected. In the United States, the federal government has enacted several major laws that control consumer credit * including the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Each of these laws gives consumers certain rights and responsibilities in the money lending process.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is included as Title VIII of the Consumer Credit Protection Act. The main focus of this law is on guaranteeing ethical practices in the method of collecting debts from consumers. The law encourages just, rational, and non-discriminatory treatment of consumers by forbidding debt collectors from taking unjust, offensive, or misleading actions.

The Fair Debt Collection Practices Act includes the following provisions:

1. Debt collectors are allowed to contact other people, aside from the debtor himself, only to find out the whereabouts of the debtor.

2. Debt collectors aren't allowed to contact the debtor before 8:00 am and after 9:00 pm local time.

3. Debt collectors aren't permitted to intimidate, pressure, or make threats of legal action or arrest to the consumer if it is not duly planned, considered, or made known to third parties.

Fair Credit Reporting Act

The Fair Credit Reporting Act upholds the confidentiality, discretion, and truth of information used in creating consumer credit reports. The Act controls the distribution, collection, and utilization of credit information and gives consumers a way to dispute incorrect information on their credit reports. Under this law, consumers are entitled to the following actions:

1. Credit bureaus are permitted to provide credit reports only to those with lawful business causes. Only entities such as insurers, employers, creditors, housing providers, and government agencies are allowed to receive an individual's credit report as part of the evaluation process.

2. Consumers must be able to access their credit reports in order to ensure the data's correctness. In cases of denied credit, consumers have the right to know which credit bureau issued the report to the lender. This way, the consumer will be able to check if there are any discrepancies on the report.

These are just some of the rights consumers enjoy under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act, although there are many more. It's important to understand your rights in case you ever wind up in trouble with regard to your credit. However, unless you*ve studied American credit laws in depth, you may need additional assistance if you feel you*re being treated unfairly. Seeking legal assistance from a reputable credit counseling service or an attorney experienced in consumer credit may be the best way to get your credit affairs in order.