On Your Own; Your Legal Right @ Eighteen On Your Own formatted final version | Page 16

be certain that the national or local bank or store card, or term loan, is
right for you.
If your credit application is denied, you have the right to know why. The
law requires creditors to notify you within 30 days whether your credit
application has been accepted or rejected. If your application is rejected,
you must be told why in writing, or that you can request the specific
reasons why by contacting the creditor within 60 days. The creditor then
has 30 days to answer.
If your credit is denied, it’s good to find out why. A mistake may have been
made. If not, the reasons will help you make a better application the next
time. And if the law was broken and your application was not fairly
evaluated, you have rights and can seek correction.
If You Fall Behind or Don’t Pay
If you fall behind or don’t pay a bill on time—even for a legitimate
reason— you may be in default—you may have broken your promise (the
contract) to pay according to a certain schedule. It is usually best to let the
creditor know that you are having trouble making payments before you
are in default. Once you have defaulted, the creditor may take certain
actions to collect the debt. But you still have rights.
If the Creditor Repossesses
A creditor may repossess collateral (take back the car, stereo, or other
item you bought with the money loaned to you) only when your credit
contract permits it. However, a creditor may not use force or otherwise
breach the peace attempting to repossess your goods. Your home may not
be entered to repossess goods unless there is a court order to do so.
Your car may be repossessed wherever it is parked, as long as no breach
of the peace and no forced entry take place. If your car is parked in a
locked garage, a court order must be obtained before it can be taken
away. All items in the car at the time of repossession still belong to you,
and you are entitled to get them back undamaged.
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