Your Rights When Borrowing Money

AuthorDaniel A Edelman
ProfessionLawyer
Pages1-3
1
Your Rights When
Borrowing Money
CHAPTER
1
Federal law and many state laws give you basic rights in applying for credit. These include the following:
•You have the right to shop for the best loan available to you and compare the charges of different
lenders.
•You have the right to be informed about the total cost of your loan, including the interest rate
and other fees.
•You have the right to have a clear understanding of the terms and total cost of credit. Disclosures
setting forth the key credit terms must be provided to you in a form you can keep before you are
bound to a credit transaction.
•You have the right not to be discriminated against in connection with a credit transaction— either
refused credit or charged more for credit—based on race, color, religion, national origin, gender,
marital status, or age; because your income derives from any public assistance program; or
because you have exercised in good faith your rights under any title of the federal Consumer
Credit Protection Act. The Consumer Credit Protection Act includes the Truth in Lending Act,
Consumer Leasing Act, Fair Credit Reporting Act, Equal Credit Opportunity Act, Fair Debt
Collection Practices Act, and Credit Repair Organizations Act.
•You have the right to have your performance on credit obligations reported accurately by credit
bureaus if it is reported at all. Contrary to popular belief, there is no legal requirement that credi-
tors report to credit bureaus unless they promise you to do so in a contract.
•You have the right to be informed if the information in your credit file has been used against
you, to either deny credit or insurance or increase the cost of credit or insurance. This is done by
means of what is generally called an adverse-action notice.
Edelman53574_Ch001.indd 1 22/05/17 10:18 AM

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