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Consumer Handbook to (U.S.) Credit Protection Laws
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* ------------------------------------------------------------------ *
Consumer Handbook to Credit Protection Laws
[Graphic Omitted]
Board of Governors of the Federal Reserve System
Washington, D.C. 20551
12th Printing, April 1993
Contents
INTRODUCTION
THE COST OF CREDIT
Shopping Is the First Step
What Laws Apply?
The Finance Charge and Annual Percentage Rate (APR)
A Comparison
Cost of Open-end Credit
Leasing Costs and Terms
Open-end Leases and Balloon Payments
Costs of Settlement on a House
APPLYING FOR CREDIT
Discrimination
What Law Applies?
What Creditors Look For
Information the Creditor Can't Use
Special Rules
Discrimination Against Women
If You're Turned Down
CREDIT HISTORIES AND RECORDS
Building Up a Good Record
What Laws Apply?
Credit Histories for Women
Keeping Up Credit Records
OTHER ASPECTS OF USING CREDIT
What Laws Apply?
Billing Errors
Defective Goods or Services
Prompt Credit for Payments and Refunds for Credit Balances
Cancelling a Mortgage
Lost or Stolen Credit Cards
Unsolicited Cards
ELECTRONIC FUND TRANSFERS
Instant Money
EFT in Operation
What Law Applies?
What Record Will I Have of My Transactions?
How Easily Will I Be Able to Correct Errors?
What About Loss or Theft?
What About Solicitations?
Do I Have to Use EFT?
Special Questions About Preauthorized Plans
COMPLAINING ABOUT CREDIT
Complaining to Federal Enforcement Agencies
Penalties Under the Laws
GLOSSARY
SUBJECT INDEX
DIRECTORY OF FEDERAL AGENCIES
FEDERAL RESERVE BANKS
OTHER CONSUMER PAMPHLETS AVAILABLE
INTRODUCTION
The Consumer Credit Protection Act of 1968--which launched
Truth in Lending--was a landmark piece of legislation. For the
first time, creditors had to state the cost of borrowing in a
common language so that you--the customer--could figure out
exactly what the charges would be, compare costs, and shop
around for the credit deal best for you.
Since 1968, credit protections have multiplied rapidly.
The concepts of "fair" and "equal" credit have been written
into laws that outlaw unfair discrimination in credit
transactions; require that consumers be told the reason when
credit is denied; let borrowers find out about their credit
records; and set up a way to settle billing disputes.
Each law was meant to reduce the problems and confusion
surrounding consumer credit which, as it became more widely
used in our economy, also grew more complex. Together, these
laws set a standard for how individuals are to be treated in
their financial dealings.
The laws say, for instance:
-- that you cannot be turned down for a credit card just
because you're a single woman;
-- that you can limit your risk if a credit card is lost or
stolen;
-- that you can straighten out errors in your monthly bill
without damage to your credit rating; and
-- that you won't find credit shut off just because you've
reached the age of 65.
But, let the buyer be aware! It is important to know your
fights and how to use them. This handbook explains how the
consumer credit laws can help you shop for credit, apply for
it, keep up your credit standing, and--if need be--complain
about an unfair deal. It explains what you should look for when
using credit and what creditors look for before extending it.
It also points out the laws' solutions to discriminatory
practices that have made it difficult for women and minorities
to get credit in the past.
THE COST OF CREDIT
[Graphic Omitted]
Shopping is the First Step
You get credit by promising to pay in the future for
something you receive in the present.
Credit is a convenience. It lets you charge a meal on your
credit card, pay for an appliance on the installment plan, take
out a loan to buy a house, or pay for schooling or vacations.
With credit, you can enjoy your purchase while you're paying
for it--or you can make a purchase when you're lacking ready
cash.
But there are strings attached to credit too. It usually
costs something. And of course what is borrowed must be paid
back.
If you are thinking of borrowing or opening a credit
account, your first step should be to figure out how much it
will cost you and whether you can afford it. Then you should
shop around for the best terms.
What Laws Apply?
Two laws help you compare costs:
TRUTH IN LENDING requires creditors to give you certain
basic information about the cost of buying on credit or taking
out a loan. These "disclosures" can help you shop around for
the best deal.
CONSUMER LEASING disclosures can help you compare the cost
and terms of one lease with another and with the cost and terms
of buying for cash or on credit.
The Finance Charge and Annual Percentage Rate (APR)
Credit costs vary. By remembering two terms, you can
compare credit prices from different sources. Under Truth in
Lending, the creditor must tell you--in writing and before you
sign any agreement--the finance charge and the annual
percentage rate.
The finance charge is the total dollar amount you pay to
use credit. It includes interest costs, and other costs, such
as service charges and some credit--related insurance premiums.
For example, borrowing $100 for a year might cost you $10
in interest. If there were also a service charge of $1, the
finance charge would be $11.
The annual percentage rate (APR)is the percentage cost (or
relative cost) of credit on a yearly basis. This is your key to
comparing costs, regardless of the amount of credit or how long
you have to repay it:
Again, suppose you borrow $100 for one year and pay a
finance charge of $10. If you can keep the entire $100 for the
whole year and then pay back $110 at the end of the year, you
are paying an APR of 10 percent. But, if you repay the $100 and
finance charge (a total of $110) in twelve equal monthly
installments, you don't really get to use $100 for the whole
year. In fact, you get to use less and less of that $100 each
month. In this case, the $10 charge for credit amounts to an
APR of 18 percent.
All creditors--banks, stores, car dealers, credit card
companies, finance companies-must state the cost of their
credit in terms of the finance charge and the APR. Federal law
does not set interest rates or other credit charges. But it
does require their disclosure so that you can compare credit
costs. The law says these two pieces of information must be
shown to you before you sign a credit contract or before you
use a credit card.
A Comparison
Even when you understand the terms a creditor is offering,
it's easy to underestimate the difference in dollars that
different terms can make. Suppose you're buying a $7,500 car.
You put $1,500 down, and need to borrow $6,000. Compare the
three credit arrangements on the next page.
How do these choices stack up? The answer depends partly
on what you need.
The lowest cost loan is available from Creditor A.
If you were looking for lower monthly payments, you could
get then by paying the loan off over a longer period of time.
However, you would have to pay more in total costs. A loan from
Creditor B--also at a 14 percent APR, but for four years--will
add about $488 to your finance charge.
If that four-year loan were available only from Creditor
C, the APR of 15 percent would add another $145 or so to your
finance charges as compared with Creditor B.
Other terms--such as the size of the down payment--will
also make a difference. Be sure to look at all the terms before
you make your choice.
[Graphic Omitted]
Cost of Open-end Credit
Open-end credit includes bank and department store credit
cards, gasoline company cards, home equity lines, and
checkoverdraft accounts that let you write checks for more than
your actual balance with the bank. Open-end credit can be used
again and again, generally until you reach a certain
prearranged borrowing limit. Truth in Lending requires that
open-end creditors tell you the terms of the credit plan so
that you can shop and compare the costs involved.
When you're shopping for an open-end plan, the APR you're
told represents only the periodic rate that you will be
charged--figured on a yearly basis. (For instance, a creditor
that charges 1% percent interest each month would quote you an
APR of 18 percent.) Annual membership fees, transaction
charges, and points, for example, are listed separately; they
are not included in the APR. Keep this in mind and compare all
the costs involved in the plans, not just the APR.
Creditors must tell you when finance charges begin on your
account, so you know how much time you have to pay your bill
before a finance charge is added. Creditors may give you a
25-day grace period, for example, to pay your balance in full
before making you pay a finance charge.
Creditors also must tell you the method they use to figure
the balance on which you pay a finance charge; the interest
rate they charge is applied to this balance to come up with the
finance charge. Creditors use a number of different methods to
arrive at the balance. Study them carefully; they can
significantly affect your finance charge.
Some creditors, for instance, take the amount you owed at
the beginning of the billing cycle, and subtract any payments
you made during that cycle. Purchases are not counted. This is
called the adjusted balance method.
Another is the previous balance method. Creditors simply
use the amount owed at the beginning of the billing cycle to
come up with the finance charge.
Under one of the most common methods-the average daily
balance method--creditors add your balances for each day in the
billing cycle and then divide that total by the number of days
in the cycle. Payments made during the cycle are subtracted in
arriving at the daily amounts, and, depending on the plan, new
purchases may or may not be included. Under another method--the
two-cycle average daily balance method--creditors use the
average daily balances for two billing cycles to compute your
finance charge. Again, payments will be taken into account in
figuring the balances, but new purchases may or may not be
included.
Be aware that the amount of the finance charge may vary
considerably depending on the method used, even for the same
pattern of purchases and payments.
If you receive a credit card offer or an application, the
creditor must give you information about the APR and other
important terms of the plan at that time. Likewise, with a home
equity plan, information must be given to you with an
application.
Truth in Lending does not set the rates or tell the
creditor how to calculate finance charges--it only requires
that the creditor tell you the method that it uses. You should
ask for an explanation of any terms you don't understand.
Leasing Costs and Terms
Leasing gives you temporary use of property in return for
periodic payments. It has become a popular alternative to
buying--under certain circumstances. For instance, you might
consider leasing furniture for an apartment you'll use only for
a year. The Consumer Leasing law requires leasing companies to
give you the facts about the costs and terms of their
contracts, to help you decide whether leasing is a good idea.
The law applies to personal property leased to you for
more than four months for personal, family, or household use.
It covers, for example, long-term rentals of cars, furniture,
and appliances, but not daily car rentals or leases for
apartments.
Before you agree to a lease, the leasing company must give
you a written statement of costs, including the amount of any
security deposit, the amount of your monthly payments, and the
amount you must pay for licensing, registration, taxes, and
maintenance.
The company must also give you a written statement about
terms, including any insurance you need, any guarantees,
information about who is responsible for servicing the
property, any standards for its wear and tear, and whether or
not you have an option to buy the property.
Open-end Leases and Balloon Payments
Your costs will depend on whether you choose an open-end
lease or a closed-end lease. Open-end leases usually mean lower
monthly payments than closed-end leases, but you may owe a
large extra payment--often called a balloon payment--based on
the value of the property when you return it.
Suppose you lease a car under a three-year open-end lease.
The leasing company estimates the car will be worth $4,000
after three years of normal use. If you bring back the car in a
condition that makes it worth only $3,500, you may owe a
balloon payment of $500.
The leasing company must tell you whether you may owe a
balloon payment and how it will be calculated. You should also
know that:
-- you have the right to an independent appraisal of the
property's worth at the end of the lease. You must pay the
appraiser's fee, however.
-- a balloon payment is usually limited to no more than three
times the average monthly payment. If your monthly payment
is $ 200, your balloon payment wouldn't be more than
$600--unless, for example, the property has received more
than average wear and tear (for instance, if you drove a
car more than average mileage).
Closed-end leases usually have higher monthly payment than
open-end leases, but there is no balloon payment at the end of
the lease.
Costs of Settlement on a House
A house is probably the single largest credit purchase for
most consumers--and one of the most complicated. The Real
Estate Settlement Procedures Act, like Truth in Lending, is a
disclosure law. The Act, administered by the Department of
Housing and Urban Development, requires the lender to give you,
in advance, certain information about the costs you will pay
when you close the loan.
This event is called settlement or closing, and the law
helps you shop for lower settlement costs. To find out more
about it, write to:
Deputy Assistant Secretary for Housing Attention:
RESPA Enforcement
U.S. Department of Housing and Urban
Development 451 Seventh Street, S.W. Room 5241
Washington, D.C. 20410
Should you need to phone:
(202) 708-4560
A Federal Reserve pamphlet, entitled "A Consumer's Guide
to Mortgage Closing Costs," also contains useful information
for consumers.
APPLYING FOR CREDIT
[Graphic Omitted]
Discrimination
When you're ready to apply for credit, you should know
what creditors think is important in deciding whether you're
creditworthy. You should also know what they cannot legally
consider in their decisions.
What Law Applies?
EQUAL CREDIT OPPORTUNITY ACT requires that all credit
applicants be considered on the basis of their actual
qualifications for credit and not be turned away because of
certain personal characteristics.
What Creditors Look For
The Three C's. Creditors look for an ability to repay debt
and a willingness to do so--and sometimes for a little extra
security to protect their loans. They speak of the three C's of
credit-capacity, character, and collateral.
Capacity. Can you repay the debt? Creditors ask for
employment information: your occupation, how long you've
worked, and how much you earn. They also want to know your
expenses: how many dependents you have, whether you pay alimony
or child support, and the amount of your other obligations.
Character. Will you repay the debt? Creditors will look at
your credit history (see chapter on Credit Histories and
Records): how much you owe, how often you borrow, whether you
pay bills on time, and whether you live within your means. They
also look for signs of stability: how long you've lived at your
present address, whether you own or rent, and length of your
present employment.
Collateral. Is the creditor fully protected if you fail to
repay? Creditors want to know what you may have that could be
used to back up or secure your loan, and what sources you have
for repaying debt other than income, such as savings,
investments, or property.
Creditors use different combinations of these facts in
reaching their decisions. Some set unusually high standards and
other simply do not make certain kinds of loans. Creditors also
use different kinds of rating systems. Some rely strictly on
their own instinct and experience. Others use a
"credit-scoring" or statistical system to predict whether
you're a good credit risk. They assign a certain number of
points to each of the various characteristics that have proved
to be reliable signs that a borrower will repay. Then, they
rate you on this scale.
And so, different creditors may reach different
conclusions based on the same set of facts. One may find you an
acceptable risk, while another may deny you a loan.
Information the Creditor Can't Use
The Equal Credit Opportunity Act does not guarantee that
you will get credit. You must still pass the creditor's tests
of creditworthiness. But the creditor must apply these tests
fairly, impartially, and without discriminating against you on
any of the following grounds: age, gender, marital status,
race, color, religion, national origin, because you receive
public income such as veterans benefits, welfare or Social
Security, or because you exercise your rights under Federal
credit laws such as filing a billing error notice with a
creditor. This means that a creditor may not use any of those
grounds as a reason to:
-- discourage you from applying for a loan;
-- refuse you a loan if you quality; or
-- lend you money on terms different from those granted
another person with similar income, expenses, credit
history, and collateral.
Special Rules
Age. In the past, many older persons have complained about
being denied credit just because they were over a certain age.
Or when they retired, they often found their credit suddenly
cut off or reduced. So the law is very specific about how a
person's age may be used in credit decisions.
A creditor may ask your age, but if you're old enough to
sign a binding contract (usually 18 or 21 years old depending
on state law), a creditor may not:
-- turn you down or offer you less credit just because of
your age;
-- ignore your retirement income in rating your application;
-- close your credit account or require you to reapply for it
just because you reach a certain age or retire; or
-- deny you credit or close your account because credit life
insurance or other credit-related insurance is not
available to persons your age.
Creditors may "score" your age in a creditscoring system,
but:
-- if you are 62 or older you must be given at least as many
points for age as any person under 62.
Because individuals' financial situations can change at
different ages, the law lets creditors consider certain
information related to age--such as how long until you retire
or how long your income will continue. An older applicant might
not qualify for a large loan with a 5 percent down payment on a
risky venture, but might qualify for a smaller loan--with a
bigger down payment--secured by good collateral. Remember that
while declining income may be a handicap if you are older, you
can usually offer a solid credit history to your advantage. The
creditor has to look at all the facts and apply the usual
standards of creditworthiness to your particular situation.
Public Assistance. You may not be denied credit just
because you receive Social Security or public assistance (such
as Aid to Families with Dependent Children). But--as is the
case with age--certain information related to this source of
income could clearly affect creditworthiness. So, a creditor
may consider such things as:
-- how old your dependents are (because you may lose benefits
when they reach a certain age); or
-- whether you will continue to meet the residency
requirements for receiving benefits.
This information helps the creditor determine the
likelihood that your public assistance income will continue.
Housing Loans. The Equal Credit Opportunity Act covers
your application for a mortgage or home improvement loan. It
bans discrimination because of such characteristics as your
race, color, gender, or because of the race or national origin
of the people in the neighborhood where you live or want to buy
your home. Nor may creditors use any appraisal of the value of
the property that considers the race of the people in the
neighborhood.
In addition, you are entitled to receive a copy of an
appraisal report that you paid for in connection with an
application for credit, if a you make a written request for the
report.
Discrimination Against Women
Both men and women are protected from discrimination based
on gender or marital status. But many of the law's provisions
were designed to stop particular abuses that generally made if
difficult for women to get credit. For example, the idea that
single women ignore their debts when they marry, or that a
woman's income "doesn't count" because she'll leave work to
have children, now is unlawful in credit transactions.
The general rule is that you may not be denied credit just
because you are a woman, or just because you are married,
single, widowed, divorced, or separated. Here are some
important protections:
Gender and Marital Status. Usually, creditors may not ask
your gender on an application form (one exception is on a loan
to buy or build a home).
You do not have to use Miss, Mrs., or Ms. with your name
on a credit application. But, in some cases, a creditor may ask
whether you are married, unmarried, or separated (unmarried
includes single, divorced, and widowed).
Child-bearing Plans. Creditors may not ask about your
birth control practices or whether you plan to have children,
and they may not assume anything about those plans.
Income and Alimony. The creditor must count all of your
income, even income from part-time employment.
Child support and alimony payments are a primary source of
income for many women. You don't have to disclose these kinds
of income, but if you do creditors must count them.
Telephones. Creditors may not consider whether you have a
telephone listing in your name because this would discriminate
against many married women. (You may be asked if there's a
telephone in your home.)
A creditor may consider whether income is steady and
reliable, so be prepared to show that you can count on
uninterrupted income--particularly if the source is alimony
payments or part-time wages.
Your Own Accounts. Many married women used to be turned
down when they asked for credit in their own name. Or, a
husband had to cosign an account--agree to pay if the wife
didn't--even when a woman's own income could easily repay the
loan. Single women couldn't get loans because they were thought
to be somehow less reliable than other applicants. You now have
a fight to your own credit, based on your own credit records
and earnings. Your own credit means a separate account or loan
in your own name--not a joint account with your husband or a
duplicate card on his account. Here are the rules:
-- Creditors may not refuse to open an account just because
of your gender or marital status.
-- You can choose to use your first name and maiden name
(Mary Smith); your first name and husband's last name
(Mary Jones); or a combined last name (Mary Smith-Jones).
-- If you're creditworthy, a creditor may not ask your
husband to cosign your account, with certain exceptions
when property rights are involved.
-- Creditors may not ask for information about your husband
or ex-husband when you apply for your own credit based on
your own income--unless that income is alimony, child
support, or separate maintenance payments from your spouse
or former spouse.
This last rule, of course, does not apply if your husband
is going to use your account or be responsible for paying your
debts on the account, or if you live in a community property
state. (Community property states are: Arizona, California,
Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and
Wisconsin.)
Change in Marital Status. Married women have sometimes
faced severe hardships when cut off from credit after their
husbands died. Single women have had accounts closed when they
married, and married women have had accounts closed after a
divorce. The law says that creditors may not make you reapply
for credit just because you marry or become widowed or
divorced. Nor may they close your account or change the terms
of your account on these grounds. There must be some sign that
your creditworthiness has changed. For example, creditors may
ask you to reapply if you relied on your ex-husband's income to
get credit in the first place.
Setting up your own account protects you by giving you
your own history of how you handle debt, to rely on if your
financial situation changes because you are widowed or
divorced. If you're getting married and plan to take your
husband's surname, write to your creditors and tell them if you
want to keep a separate account.
If You're Turned Down
Remember, your gender or race may not be used to
discourage you from applying for a loan. And creditors may not
hold up or otherwise delay your application on those grounds.
Under the Equal Credit Opportunity Act, you must be notified
within 30 days after your application has been completed
whether your loan has been approved or not. If credit is
denied, this notice must be in writing and it must explain the
specific reasons why you were denied credit or tell you of your
right to ask for an explanation. You have the same rights if an
account you have had is closed.
If you are denied credit, be sure to find out why.
Remember, you may have to ask the creditors for this
explanation. It may be that the creditor thinks you have
requested more money than you can repay on your income. It may
be that you have not been employed or lived long enough in the
community. You can discuss terms with the creditor and ways to
improve your creditworthiness. The next chapter explains how to
improve your ability to get credit.
If you think you have been discriminated against, cite the
law to the lender. If the lender still says no without a
satisfactory explanation, you may contact a Federal enforcement
agency for assistance or bring legal action as described in the
last chapter of this handbook.
CREDIT HISTORIES AND RECORDS
[Graphic Omitted]
Building Up a Good Record
On your first attempt to get credit, you may face a common
frustration: sometimes it seems you have to already have credit
to get credit. Some creditors will look only at your salary and
job and the other financial information you put on your
application. But most also want to know about your track record
in handling credit--how reliably you've repaid past debts. They
turn to the records kept by credit bureaus or credit reporting
agencies whose business is to collect and store information
about borrowers that is routinely supplied by many lenders.
These records include the amount of credit you have received
and how faithfully you've paid it back.
Here are several ways you can begin to build up a good
credit history:
-- Open a checking account or a savings account, or both.
These do not begin your credit file, but may be checked as
evidence that you have money and know how to manage it.
Cancelled checks can be used to show you pay utility bills
or rent regularly, a sign of reliability.
-- Apply for a department store credit card. Repaying credit
card bills on time is a plus in credit histories.
-- Ask whether you may deposit funds with a financial
institution to serve as collateral for a credit card; some
institutions will issue a credit card with a credit limit
usually no greater than the amount on deposit.
-- If you're new in town, write for a summary of any credit
record kept by a credit bureau in your former town. (Ask
the bank or department store in your old hometown for the
name of the agency it reports to.)
-- If you don't qualify on the basis of your own credit
standing, offer to have someone cosign your application.
-- If you're turned down, find out why and try to clear up
any misunderstandings.
What Laws Apply?
The following laws can help you start your credit history
and keep your record accurate:
THE EQUAL CREDIT OPPORTUNITY ACT gives women a way to
start their own credit history and identity.
THE FAIR CREDIT REPORTING ACT sets up a procedure for
correcting mistakes on your credit record.
Credit Histories for Women
Under the Equal Credit Opportunity Act, reports to credit
bureaus must be made in the names of both husband and wife if
both use an account or are responsible for repaying the debt.
Some women who are divorced or widowed might not have separate
credit histories because in the past credit accounts were
listed in their husband's name only. But they can still benefit
from this record. Under the Equal Credit Opportunity Act,
creditors must consider the credit history of accounts women
have held jointly with their husbands. Creditors must also look
at the record of any account held only in the husband's name if
a woman can show it also reflects her own creditworthiness. If
the record is unfavorable--if an ex-husband was a bad credit
risk--she can try to show that the record does not reflect her
own reputation. Remember that a wife may also open her own
account to be sure of starting her own credit history.
Here's an example:
Mary Jones, when married to John Jones, always paid their
credit card bills on time and from their joint checking
account. But the card was issued in John's name, and the credit
bureau kept all records in John's name. Now Mary is a widow and
wants to take out a new card, but she's told she has no credit
history. To benefit from the good credit record already on the
books in John's name, Mary should point out that she handled
all accounts properly when she was married and that bills were
paid by checks from their joint checking account.
Keeping Up Credit Records
Mistakes on your credit record--sometimes mistaken
identities--can cloud your credit future. Your credit rating is
important, so be sure credit bureau records are complete and
accurate.
The Fair Credit Reporting Act says that you must be told
what's in your credit file and have any errors corrected.
Negative Information. If a lender refuses you credit
because of unfavorable information in your credit report, you
have a right to the name and address of the agency that keeps
your report. Then, you may either request information from the
credit bureau by mail or in person. You will not get an exact
copy of the file, but you will at least learn what's in the
report. The law also says that the credit bureau must help you
interpret the data--because it's raw data that takes experience
to analyze. If you're questioning a credit refusal made within
the past 30 days, the bureau is not allowed to charge a fee for
giving you information.
Any error that you find must be investigated by the credit
bureau with the creditor who supplied the data. The bureau will
remove from your credit file any errors the creditor admits are
there. If you disagree with the findings, you can file a short
statement in your record giving your side of the story. Future
reports to creditors must include this statement or a summary
of it.
Old Information. Sometimes credit information is too old
to give a good picture of your financial reputation. There is a
limit on how long certain kinds of information may be kept in
your file:
-- Bankruptcies must be taken off your credit history after
10 years.
-- Suits and judgments, tax liens, arrest records, and most
other kinds of unfavorable information must be dropped
after 7 years.
Your credit record may not be given to anyone who does not
have a legitimate business need for it. Stores to which you are
applying for credit or prospective employers may examine your
record; curious neighbors may not.
Billing Mistakes. In the next chapter, you will find the
steps to take if there's an error on your bill. By following
these steps, you can protect your credit rating.
OTHER ASPECTS OF USING CREDIT
[Graphic Omitted]
The best way to keep up your credit standing is to repay
all debts on time. But there may be complications. To protect
your credit rating, you should learn how to correct mistakes
and misunderstandings that can tangle up your credit accounts.
When there's a snag, first try to deal directly with the
creditor. The credit laws can help you settle your complaints
without a hassle.
What Laws Apply?
FAIR CREDIT BILLING ACT sets up procedures requiring
creditors to promptly correct billing mistakes; allowing you to
withhold payments on defective goods; and requiring creditors
to promptly credit your payments.
IN LENDING gives you three days to change your mind about
certain credit transactions that use your home as collateral;
it also limits your risk on lost or stolen credit cards.
Billing Errors
Month after month John Jones was billed for a lawn mower
he never ordered and never got. Finally, he tore up his bill
and mailed back the pieces--just to try to explain things to a
person instead of a computer.
There's a more effective, easier way to straighten out
these errors. The Fair Credit Billing Act requires creditors to
correct errors promptly and without damage to your credit
rating.
A Case of Error. The law defines a billing error as any
charge:
-- for something you didn't buy or for a purchase made by
someone not authorized to use your account;
-- that is not properly identified on your bill or is for an
amount different from the actual purchase price or was
entered on a date different from the purchase date; or
-- for something that you did not accept on delivery or that
was not delivered according to agreement.
Billing errors also include:
-- errors in arithmetic;
-- failure to show a payment or other credit to your account;
-- failure to mail the bill to your current address, if you
told the creditor about an address change at least 20 days
before the end of the billing period; or
-- a questionable item, or an item for which you need more
information.
In Case of Error: If you think your bill is wrong, or want
more information about it, follow these steps:
1. Notify the creditor in writing within 60 days after the
first bill was mailed that showed the error. Be sure to write
to the address the creditor lists for billing inquiries and to
tell the creditor:
-- your name and account number;
-- that you believe the bill contains an error and why you
believe it is wrong; and
-- the date and suspected amount of the error or the item you
want explained.
2. Pay all parts of the bill that are not in dispute. But,
while waiting for an answer, you do not have to pay the amount
in question (the "disputed amount") or any minimum payments or
finance charges that apply to it.
The creditor must acknowledge your letter within 30 days,
unless the problem can be resolved within that time. Within two
billing periods--but in no case longer than 90 days--either
your account must be corrected or you must be told why the
creditor believes the bill is correct.
If the creditor made a mistake, you do not pay any finance
charges on the disputed amount. Your account must be corrected,
and you must be sent an explanation of any amount you still
owe.
If no error is found, the creditor must send you an
explanation of the reasons for that finding and promptly send a
statement of what you owe, which may include any finance
charges that have accumulated and any minimum payments you
missed while you were questioning the bill. You then have the
time usually given on your type of account to pay any balance,
but not less that 10 days.
3. If you still are not satisfied, you should notify the
creditor in writing within the time allowed to pay your bill.
Maintaining Your Credit Rating. A creditor may not
threaten your credit rating while you're resolving a billing
dispute.
Once you have written about a possible error, a creditor
must not give out information to other creditors or credit
bureaus that would hurt your credit reputation. And, until your
complaint is answered, the creditor also may not take any
action to collect the disputed amount.
After the creditor has explained the bill, if you do not
pay in the time allowed, you may be reported as delinquent on
the amount in dispute and the creditor may take action to
collect. Even so, you can still disagree in writing. Then the
creditor must report that you have challenged your bill and
give you the name and address of each person who has received
information about your account. When the matter is settled, the
creditor must report the outcome to each person who has
received information. Remember that you may also place your own
side of the story in your credit record.
Defective Goods or Services
Your new sofa arrives with only three legs. You try to
return it; no luck. You ask the merchant to repair or replace
it; still no luck. The Fair Credit Billing Act allows you to
withhold payment on any damaged or poor quality goods or
services purchased with a credit card, as long as you have made
a real attempt to solve the problem with the merchant.
This right may be limited if the card was a bank or travel
and entertainment card or any card not issued by the store
where you made your purchase. In such cases, the sale:
-- must have been for more than $50; and
-- must have taken place in your home state or within 100
miles of your home address.
Prompt Credit for Payments and Refunds for Credit Balances
Some creditors will not charge a finance charge if you pay
your account within a certain period of time. In this case, it
is especially important that you get your bills, and get credit
for paying them, promptly. Check your statements to make sure
your creditor follows these rules:
Billing. Look at the date on the postmark. If your account
is one on which no finance or other charge is added before a
certain due date, then creditors must mail their statements at
least 14 days before payment is due.
Crediting. Look at the payment date entered on the
statement. Creditors must credit payments on the day they
arrive, as long as you pay according to payment instructions.
This means, for example, sending your payment to the address
listed on the bill.
Credit Balances. If a credit balance results on your
account (for example, because you pay more than the amount you
owe, or you return a purchase and the purchase price is
credited to your account), the creditor must make a refund to
you. The refund must be made within seven business days after
your written request, or automatically if the credit balance is
still in existence after six months.
Cancelling a Mortgage
Truth in Lending gives you a chance to change your mind on
one important kind of transaction--when you use your home as
security for a credit transaction. For example, when you are
financing a major repair or remodeling and use your home as
security, you have three business days, usually after you sign
a contract, to think about the transaction and to cancel it if
you wish. The creditor must give you written notice of your
right to cancel, and, if you decide to cancel, you must notify
the creditor in writing within the three-day period. The
creditor must then return all fees paid and cancel the security
interest in your home. No contractor may start work on your
home, and no lender may pay you or the contractor until the
three days are up. If you must have the credit immediately to
meet a financial emergency, you may give up your right to
cancel by providing a written explanation of the circumstances.
The right to cancel (or right of rescission) was provided
to protect you against hasty decisions--or decisions made under
pressure--that might put your home at risk if you are unable to
repay the loan. The law does not apply to a mortgage to finance
the purchase of your home; for that, you commit yourself as
soon as you sign the mortgage contract. And, if you use your
home to secure an open-end credit line--a home equity line, for
instance--you have the right the cancel when you open the
account or when your security interest or credit limit is
increased. (In the case of an increase, only the increase would
be cancelled.)
Lost or Stolen Credit Cards
If your wallet is stolen, your greatest cost may be
inconvenience, because your liability on lost or stolen cards
is limited under Truth in Lending.
You do not have to pay for any unauthorized charges made
after you notify the card company of loss or theft of your
card. So keep a list of your credit card numbers and notify
card issuers immediately if your card is lost or stolen. The
most you will have to pay for unauthorized charges is $50 on
each card--even if someone runs up several hundred dollars worth
of charges before you report a card missing.
Unsolicited Cards
It is illegal for card issuers to send you a credit card
unless you ask for or agree to receive one. However, a card
issuer may send, without your request, a new card to replace an
expiring one.
ELECTRONIC FUND TRANSFERS
[Graphic Omitted]
Instant Money
On his way home last Friday night, John Jones realized he
had no cash for the weekend. The bank was closed, but John had
his bank debit card and the code to use it. He inserted the
card into an automated teller machine outside the front door of
the bank; then, using a number keyboard, he entered his code
and pressed the buttons for a withdrawal of $50. John's cash
was dispensed automatically from the machine, and his bank
account was electronically debited for the $50 cash withdrawal.
John's debit card is just one way to use electronic fund
transfer (EFT) systems that allow payment between parties by
substituting an electronic signal for cash or checks.
Are we heading for a checkless society? Probably not. But
a dent in the number of paper checks in the country's banking
system--or a reduction in the rate at which that number has
been growing--is clearly one advantage to electronic banking.
Today, the cost of moving checks through the banking
system is estimated to be approximately 80 cents per check,
including the costs of paper, printing, and mailing. Moreover,
checks--except your own check presented at your own bank--take
time to cash: time for delivery, endorsement, presentation to
another person's bank, and winding through various stations in
the check clearing system. Technology now can lower the costs
of the payment mechanism and make it more efficient and
convenient by reducing paperwork.
EFT in Operation
The national payment mechanism moves money between
accounts in a fast, paperless way. These are some examples of
EFT systems in operation:
Teller Machines (ATMs). Consumers can do their banking
without the assistance of a teller, as john Jones did to get
cash, or to make deposits, pay bills, or transfer funds from
one account to another electronically. These machines are used
with a debit or EFT card and a code, which is often called a
personal identification number or "PIN."
(POS) Transactions. Some EFT cards can be used when
shopping to allow the transfer of funds from the consumer's
account to the merchant's. To pay for a purchase, the consumer
presents an EFT card instead of a check or cash. Money is taken
out of the consumer's account and put into the merchant's
account electronically.
Preauthorized Transfers. This is a method of automatically
depositing to or withdrawing funds from an individual's
account, when the account holder authorizes the bank or a third
party (such as an employer) to do so. For example, consumers
can authorize direct electronic deposit of wages, Social
Security or dividend payments to their accounts. Or, they can
authorize financial institutions to make regular, ongoing
payments of insurance, mortgage, utility or other bills.
Telephone Transfers. Consumers can transfer funds from one
account to another--from savings to checking, for example--or
can order payment of specific bills by phone.
What Law Applies?
THE ELECTRONIC FUND TRANSFER ACT gives consumers answers
to several basic questions about using EFT services.
A check is a piece of paper with information that
authorizes a bank to withdraw a certain amount of money from
one person's account and pay that amount to another person.
Most consumer questions center on the fact that EFT systems
transmit the information without the paper. Thus, they ask:
-- What record--what evidence--will I have of my
transactions?
-- How easily will I be able to correct errors?
-- What if someone steals money from my account?
-- What about solicitations?
-- Do I have to use EFT services?
Here are the answers the EFT Act gives to consumer
questions about these systems.
What Record Will I Have of My Transactions?
A cancelled check is permanent proof that a payment has
been made. Is proof of payment available with EFT services?
The answer is yes. If you use an ATM to withdraw money or
make deposits, or a point-of-sale terminal to pay for a
purchase, you can get a written receipt--much like the sales
receipt you get with a cash purchase--showing the amount of the
transfer, the date it was made, and other information. This
receipt is your record of transfers initiated at an electronic
terminal.
Your periodic bank statement must also show all electronic
transfers to and from your account, including those made with
debit cards, by a preauthorized arrangement, or under a
telephone transfer plan. It will also name the party to whom
payment has been made and show any fees for EFT services (or
the total amount charged for account maintenance) and your
opening and closing balances.
Your monthly statement is proof of payment to another
person, your record for tax or other purposes, and your way of
checking and reconciling EFT transactions with your bank
balance.
How Easily Will I Be Able to Correct Errors?
The way to report errors is somewhat different with EFT
services than it is with credit cards (see page 22 for
correcting credit billing errors). But, as with credit cards,
financial institutions must investigate and correct promptly
any EFT errors you report.
If you believe there has been an error in an electronic
fund transfer relating to your account:
1. Write or call your financial institution immediately if
possible, but no later than 60 days from the date the first
statement that you think shows an error was mailed to you. Give
your name and account number and explain why you believe there
is an error, what kind of error, and the dollar amount and date
in question. If you call, you may be asked to send this
information in writing within 10 business days.
2. The financial institution must promptly investigate an
error and resolve it within 45 days. However, if the financial
institution takes longer than 10 business days to complete its
investigation, generally it must put back into your account the
amount in question while it finishes the investigation. (The
time periods are longer for POS debit card transactions and for
any EFT transaction initiated outside the United States.) In
the meantime, you will have full use of the funds in question.
3. The financial institution must notify you of the
results of its investigation. If there was an error, the
institution must correct it promptly--for example, by making a
recredit final.
If it finds no error, the financial institution must
explain in writing why it believes no error occurred and let
you know that it has deducted any amount recredited during the
investigation. You may ask for copies of documents relied on in
the investigation.
What About Loss or Theft?
It's important to be aware of the potential risk in using
an EFT card, which differs from the risk on a credit card.
On lost or stolen credit cards, your loss is limited to
$50 per card (see page 25). On an EFT card, your liability for
an unauthorized withdrawal can vary:
-- Your loss is limited to $50 if you notify the financial
institution within two business days after learning of
loss or theft of your card or code.
-- But, you could lose as much as $500 if you do not tell the
card issuer within two business days after learning of the
loss or theft.
-- If you do not report an unauthorized transfer that appears
on your statement within 60 days after the statement is
mailed to you, you risk unlimited loss on transfers made
after the 60-day period. That means you could lose all the
money in your account plus your maximum overdraft line of
credit.
Example:
On Monday, john's debit card and secret code were stolen.
On Tuesday, the thief withdrew $250, all the money John had in
his checking account. Five days later, the thief withdrew
another $500, triggering John's overdraft line of credit. John
did not realize his card was stolen until he received a
statement from the bank, showing withdrawals of $750 he did
not make. He called the bank right away. John's liability is
$50.
Now suppose that when john got his bank statement he
didn't look at it and didn't call the bank. Seventy days after
the statement was mailed to john, the thief withdrew another
$1,000, reaching the limit on John's line of credit. In this
case, John would be liable for $1,050 ($50 for transfers before
the end of the 60 days; $1,000 for transfers made more than 60
days after the statement was mailed).
What About Solicitations?
A financial institution may send you an EFT card that is
VALID FOR USE only if you ask for one, or to replace or renew
an expiring card. The financial institution must also give you
the following information about your rights and
responsibilities:
-- A notice of your liability in case the card is lost or
stolen;
-- A telephone number for reporting loss or theft of the card
or an unauthorized transfer;
-- A description of its error resolution procedures;
-- The kinds of electronic fund transfers you may make and
any limits on the frequency or dollar amounts of such
transfers;
-- Any charge by the institution for using EFT services;
-- Your right to receive records of electronic fund
transfers;
-- How to stop payment of a preauthorized transfer;
-- The financial institution's liability to you for any
failure to make or to stop transfers; and
-- The conditions under which a financial institution will
give information to third parties about your account.
Generally, you must also get advance notice of any change
in the account that would increase your costs or liability, or
limit transfers.
A financial institution may send you a card you did not
request only if the card is NOT VALID FOR USE. An "unsolicited"
card can be validated only at your request and only after the
institution makes sure that you are the person whose name is on
the card. It must also be sent with instructions on how to
dispose of an unwanted card.
Do I Have to Use EFT?
The EFT Act forbids a creditor from requiring you to repay
a loan or other credit by EFT, except in the case of overdraft
checking plans. And, although your employer or a government
agency can require you to receive your salary or a government
benefit by electronic transfer, you have the right to choose
the financial institution that will receive your funds.
Special Questions About Preauthorized Plans
Q. How will I know a preauthorized credit has been made?
A. There are various ways you may be notified. Notice may
be given by your employer (or whoever is sending the funds)
that the deposit has been sent to your financial institution.
Otherwise, a financial institution may provide notice when it
has received the credit or will send you a notice only when it
has not received the funds. Financial institutions also have
the option of giving you a telephone number you can call to
check on a preauthorized credit.
Q. How do I stop a preauthorized payment?
A. You may stop any preauthorized payment by calling or
writing the financial institution, so that your order is
received at least three business days before the payment date.
Written confirmation of a telephone notice to stop payment may
be required.
Q. If the payments I preauthorize vary in amount from
month to month, how will I know how much will be transferred
out of my account?
A. You have the right to be notified of all varying
payments at least 10 days in advance.
Or, you may choose to specify a range of amounts and to be
told only when a transfer falls outside that range. You may
also choose to be told only when a transfer differs by a
certain amount from the previous payment to the same company.
Q. Do the EFT Act protections apply to all preauthorized
plans?
A. No. They do not apply to automatic transfers from your
account to the institution that holds your account or vice
versa. For example, they do not apply to automatic payments
made on a mortgage held by the financial institution where you
have your EFT account. The EFT Act also does not apply to
automatic transfers among your accounts at one financial
institution.
COMPLAINING ABOUT CREDIT
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Complaining to Federal Enforcement Agencies
First try to solve your problem directly with a creditor.
Only if that fails should you bring more formal complaint
procedures. Here's the way to file a complaint with the Federal
agencies responsible for carrying out consumer credit
protection laws.
Complaints About Banks. If you have a complaint about a
bank in connection with any of the Federal credit laws--or if
you think any part of your business with a bank has been
handled in an unfair or deceptive way--you may get advice and
help from the Federal Reserve. The practice you complain about
does not have to be covered by Federal law. Furthermore, you
don't have to be a customer of the bank to file a complaint.
You should submit your complaint--in writing whenever
possible--to the Division of Consumer and Community Affairs,
Board of Governors of the Federal Reserve System, Washington,
D.C. 20551, or to the Reserve Bank nearest you, as listed on
page 43 of this handbook. Be sure to describe the bank practice
you are complaining about and give the name and address of the
bank involved.
The Federal Reserve will write back within 15
days--sometimes with an answer, sometimes telling you that more
time is needed to handle your complaint. The additional time is
required when complex issues are involved or when the complaint
will be investigated by a Federal Reserve Bank. When this is
the case, the Federal Reserve will try to keep you informed
about the progress being made.
The Board supervises only state--chartered banks that are
members of the Federal Reserve System. It will refer complaints
about other institutions to the appropriate Federal regulatory
agency and let you know where your complaint has been referred.
Or you may use the listing on page 42 of this booklet to write
directly to the appropriate agency.
Complaints About Other Institutions. On page 42 of this
booklet, you will also find the names of the regulatory
agencies for other financial institutions and for businesses
other than banks. Many of these agencies do not handle
individual complaints; however, they will use information about
your credit experiences to help enforce the credit laws.
Penalties Under the Laws
You may also take legal action against a creditor. If you
decide to bring a lawsuit, here are the penalties a creditor
must pay if you win.
Truth in Lending and Consumer Leasing Acts. If any
creditor fails to disclose information required under these
Acts, or gives inaccurate information, or does not comply with
the rules about credit cards or the right to cancel certain
home--secured loans, you as an individual may sue for actual
damages--any money loss you suffer. In addition, you can sue
for twice the finance charge in the case of certain credit
disclosures, or, if a lease is concerned, 25 percent of total
monthly payments. In either case, the least the court may award
you if you win is $100, and the most is $1,000. In any lawsuit
that you win, you are entitled to reimbursement for court costs
and attorney's fees.
Class action suits are also permitted. A class action suit
is one filed on behalf of a group of people with similar
claims.
Equal Credit Opportunity Act. If you think you can prove
that a creditor has discriminated against you for any reason
prohibited by the Act, you as an individual may sue for actual
damages plus punitive damages--that is, damages for the fact
that the law has been violated--of up to $10,000. In a
successful lawsuit, the court will award you court costs and a
reasonable amount for attorney's fees. Class action suits are
also permitted.
Fair Credit Billing Act. A creditor who breaks the rules
for the correction of billing errors automatically loses the
amount owed on the item in question and any finance charges on
it, up to a combined total of $50--even if the bill was correct.
You as an individual may also sue for actual damages plus twice
the amount of any finance charges, but in any case not less
than $100 nor more than $1,000. You are also entitled to court
costs and attorney's fees in a successful lawsuit. Class action
suits are also permitted.
Fair Credit Reporting Act. You may sue any credit
reporting agency or creditor for breaking the rules about who
may see your credit records or for not correcting errors in
your file. Again, you are entitled to actual damages, p]us
punitive damages that the court may allow if the violation is
proved to have been intentional. In any successful lawsuit, you
will also be awarded court costs and attorney's fees. A person
who obtains a credit report without proper authorization--or an
employee of a credit reporting agency who gives a credit report
to unauthorized persons--may be fined up to $5,000 or
imprisoned for one year, or both.
Electronic Fund Transfer Act. If a financial institution
does not follow the provisions of the EFT Act, you may sue for
actual damages (or in certain cases when the institution fails
to correct an error or recredit an account, for three times
actual damages) plus punitive damages of not less than $100 nor
more than $1,000. You are also entitled to court costs and
attorney's fees in a successful lawsuit. Class action suits are
also permitted.
If an institution fails to make an electronic fund
transfer, or to stop payment of a preauthorized transfer when
properly instructed by you to do so, you may sue for all
damages that result from the failure.
Glossary
Annual Percentage Rate (APR) -- The cost of credit as a
yearly rate.
Appraisal Fee -- The charge for estimating the value of
property offered as security.
Asset -- Property that can be used to repay debt, such as
stocks and bonds or a car.
Automated Teller Machines (ATMs) -- Electronic terminals
located on bank premises or elsewhere, through which customers
of financial institutions may make deposits, withdrawals, or
other transactions as they would through a bank teller.
Balloon Payment -- A large extra payment that may be
charged at the end of a loan or lease.
Billing Error -- Any mistake in your monthly statement as
defined by the Fair Credit Billing Act.
Business Days -- Check with your institution to find out
what days it counts as business days under the Truth in Lending
and Electronic Fund Transfer Acts.
Collateral -- Property offered to support a loan and
subject to seizure if you default.
Cosigner -- Another person who signs your loan and assumes
equal responsibility for it.
Credit -- The right granted by a creditor to pay in the
future in order to buy or borrow in the present; a sum of money
due a person or business.
Credit Bureau -- An agency that keeps your credit record.
Credit Card -- Any card, plate, or coupon book used from
time to time or over and over again to borrow money or buy
goods or services on credit.
Credit History -- The record of how you've borrowed and
repaid debts.
Creditor -- A person or business from whom you borrow or
to whom you owe money.
Credit-related Insurance -- Health, life, or accident
insurance designed to pay the outstanding balance of debt.
Credit Scoring System -- A statistical system used to rate
credit applicants according to various characteristics relevant
to creditworthiness.
Creditworthiness -- Past and future ability to repay
debts.
Debit Card (EFT Card) -- A plastic card, looks similar to
a credit card, that consumers may use to make purchases,
withdrawals, or other types of electronic fund transfers.
Default -- Failure to repay a loan or otherwise meet the
terms of your credit agreement.
Disclosures -- Information that must be given to consumers
about their financial dealings.
Elderly Applicant -- As defined in the Equal Credit
Opportunity Act, a person 62 or older.
Electronic Fund Transfer (EFT) Systems -- A variety of
systems and technologies for transferring funds electronically
rather than by check.
Finance Charge -- The total dollar amount credit will
cost.
Home Equity Line of Credit -- A form of openend credit in
which the home serves as collateral.
Joint Account -- A credit account held by two or more
people so that all can use the account and all assume legal
responsibility to repay.
Late Payment -- A payment made later than agreed upon in a
credit contract and on which additional charges may be imposed.
Lessee -- A person who signs a lease to get temporary use
of property.
Lessor -- A company that provides temporary use of
property usually in return for periodic payment.
Liability on an Account -- Legal responsibility to repay
debt.
Open-End Credit -- A line of credit that may be used over
and over again, including credit cards, overdraft credit
accounts, and home equity lines.
Open-End Lease -- A lease which may involve a balloon
payment based on the value of the property when it is returned.
Overdraft Checking -- A line of credit that allows you to
write checks or draw funds by means of an EFT card for more
than your actual balance, with an interest charge on the
overdraft.
Point-of-Sale (POS) -- A method by which consumers can
pay for purchases by having their deposit accounts debited
electronically without the use of checks.
Points and Origination Fees -- Points are finance charges
paid at the beginning of a mortgage in addition to monthly
interest. One point equals one percent of the loan amount. An
origination fee covers the lender's work in preparing your
mortgage loan.
Punitive Damages -- Damages awarded by a court above
actual damages as punishment for a violation of law.
Rescission -- The cancellation or "unwinding" of a
contract.
Security -- Property pledged to the creditor in case of a
default on a loan; see collateral.
Security Interest -- The creditor's right to take property
or a portion of property offered as security.
Service Charge -- A component of some finance charges,
such as the fee for triggering an overdraft checking account
into use.
Subject Index
Age
APR
Balloon Payment
Cancellation (Rescission)
Complaints
Credit Applications
Credit Bureaus
Credit Cards
Billing Errors
Liability for Loss or Theft
Credit Laws
Consumer Leasing
Electronic Fund Transfers
Equal Credit Opportunity
Fair Credit Billing
Fair Credit Reporting
Truth in Lending
Credit Records
Confidentiality
Correcting Errors
Women
Credit Records
Time Limits on Information
Credit Scoring
Crediting of Payments
Creditworthiness
Debit Cards
Defective Merchandise
Denials of Credit
Discrimination
Division of Consumer and Community Affairs
EFT
Errors on Account
Liability for Loss or Theft
Preauthorized Transfers
Record of Transaction
Enforcement Agencies
Finance Charge
Housing Loans
Leasing
Open-end Credit
Penalties
Point-of-Sale
Public Assistance
Reserve Banks
Settlement Costs
Women
Alimony and Support Payments
Change in Marital Status
Cosigners
Credit Histories
Information About Spouse
Separate Accounts
Directory of Federal Agencies
National Banks
Compliance Management
Office of the Comptroller of the Currency
250 E Street, S.W.
Mail Stop 7-5
Washington, D.C. 20219
(202) 874-4820
State Member Banks of the Federal Reserve System
Division of Consumer and Community Affairs
Federal Reserve Board
Washington, D.C. 20551
(202) 452-3693
Nonmember Federally Insured State Banks
Office of Consumer Programs
Federal Deposit Insurance Corp.
Washington, D.C. 20456
(202) 898-3536 or (800) 934-FDIC
Savings and Loan Associations
Division of Consumer and Civil Rights
Office of Community Investment
Office of Thrift Supervision
1700 G Street, N.W.
Washington, D.C. 20552
(202) 906-6237
Federal Credit Unions
Office of Public and Congressional Affairs
Office of Consumer Programs
National Credit Union Administration
1776 G Street, N.W.
Washington, D.C. 20456
(202) 682-9640
Other Lenders
Division of Credit Practices
Bureau of Consumer Protection
Federal Trade Commission
Washington, D.C. 20580
(202) 326-3233
Department of Justice
Civil Division
Office of Consumer Litigation
550 11th St., N.W.
The Todd Building
Room No. 6114
Washington, D.C. 20530
(202) 514-6786
Federal Reserve Banks
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Publication Services MS-138
Washington, DC 20551
(202) 452-3000
ATLANTA, Georgia
Public Affairs Department
104 Marietta Street, N.W.
ZIP 30303-2713
(404) 521-8500
BOSTON, Massachusetts
Public Services Department
P.O. Box 2076
ZIP 02106-2076
(617) 973-3000
CHICAGO, Illinois
Public Information Center
230 South LaSalle Street
P.O. Box 834
ZIP 60690-0834
(312) 322-5322
CLEVELAND, Ohio
Public Affairs Department
P.O. Box 6387
ZIP 44101-1387
(216) 579-2000
DALLAS, Texas
Public Affairs Department
2200 North Pearl Street
Zip 75201
(214) 922-6000
KANSAS CITY, Missouri
Public Affairs Department
925 Grand Avenue
ZIP 64198-0001
(816) 881-2000
MINNEAPOLIS, Minnesota
Public Affairs Department
250 Marquette Avenue
ZIP 55401-0291
(612) 340-2345
NEW YORK, New York
Public Information Department
33 Liberty Street
ZIP 10045
(212) 720-5000
PHILADELPHIA, Pennsylvania
Public Information Department
P.O. Box 66
ZIP 19105
(215) 574-6000
RICHMOND, Virginia
Public Services Department
P.O. Box 27622
ZIP 23261
(804) 697-8000
ST. LOUIS, Missouri
Public Information Office
P.O. Box 442
ZIP 63166
(314) 444-8444
SAN FRANCISCO, California
Public Information Department
P.O. Box 7702
ZIP 94120
(415) 974-2000
Other Consumer Pamphlets Available
Consumer Handbook of Adjustable Rate Mortgages
A Consumer's Guide to Mortgage Closing Costs
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Refinancings
A Guide to Business Credit for Women, Minorities, and
Small Businesses
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
A Guide to Federal Reserve Regulations
How To File a Consumer Credit Complaint
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know About
Home Equity Lines of Credit
Copies of this handbook and other consumer pamphlets are
available upon request from Publications Services, Division of
Support Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
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