Debt Collectors and Credit Reporting Agencies Warned for Their Unfair Practices

New York Times website has recorded that there are many consumers complaining about the rampant unfair practices of financial institutions such as debt collection and credit reporting agencies in particular areas.  A protection bureau known as the Consumer Financial Protection Bureau was recently created for the purpose of protecting consumers who are being treated unfairly by these agencies. The bureau made a proposal to supervise all lending institutions in their collection and reporting activities.

The Times blogger said that most common complaints from consumers at the Federal Trade Commission (FTC) are addressed to debt collectors. For credit reporting agencies the complaints are more on their unfair treatment of consumers. The consumers noted that they are favoring creditors in making their reports.

The proposal of the Consumer Financial Protection Bureau is expected to be passed this coming July. Although it is not going to be that easy because the Republicans want to have control and authority over the bureau, many people would benefit from the proposal if it pushes through.

While the proposal sponsored by the Consumer Financial Protection is being debated for its final approval, consumers who have complaints can file their complaints to the Fair Credit Act. Recently, an amendment in the Fair Credit Act was approved that requires every credit reporting agency nationwide like Equifax, Experian, and Transunion to give each consumer a copy of his or her credit report for free. What the consumers need to do is to ask for this report once a year.

If ever you have discovered errors in the reporting of credit agencies, you have to immediately make written report to the agency for the needed corrections. The FTC suggests that you do it in writing and retain a copy for yourself. Send it through registered mail to be sure that it is received by them. The credit reporting agency will then make revisions and you have to ask for a free copy of the revised report. You can also request them to provide anyone who wants to obtain your revised report in the past six months.

To protect you from debt collectors, you have to recognize your rights.  Check if your debt is time barred and do not be threatened to be sued. If you are aware of your rights, do not pay any single cent unless you are sure that the debt is yours.

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