On Your Own; Your Legal Right @ Eighteen On Your Own formatted final version | Page 19

revolving charge accounts at stores and credit-line checking accounts at banks. The law does not apply to a loan or a credit sale where you have a fixed payment schedule until the entire amount is paid back (like a car loan). While you may be able to quickly resolve your problem by calling the company or bank directly, to use your rights under this law you must notify the creditor in writing of the billing error. Your letter must reach the creditor within 60 days of the date the first bill containing the error was mailed to you. Your letter should include your name, address and account number and why you think there’s an error. Your letter must be acknowledged by the creditor in writing within 30 days of receipt unless the problem is cleared up before that. The creditor then has two billing cycles, but no more than 90 days total, to correct the problem or explain why the bill is correct. You may refuse to pay the amount in dispute, including any finance charges, until the problem is resolved. Until it is resolved, the creditor may not threaten to damage your credit rating, report you as delinquent to anyone, restrict your credit card account, or charge you interest on the amount in dispute. If your bill is incorrect, the creditor must give you a written explanation of how the bill will be corrected. All late charges and finance charges related to the error must be removed. If the creditor still believes you are wrong, you must promptly be notified in writing. At this point you are then responsible for the bill and any finance charges that may have accumulated on it. If you think the creditor is wrong, the dispute may have to be settled in court. The creditor is now free to begin regular collection procedures against you, but must also report that you still dispute the bill to any credit bureau that asks about your creditworthiness. Credit Ratings and Credit Reports Credit reports must be accurate. Credit ratings—records of whether you have paid your bills on time—are developed by private companies called credit bureaus or credit reporting agencies and are made available upon request to most businesses where you ask for credit. These reports let them know if you are a good credit risk or not. While the records often include confidential personal information, by law they cannot include 15 15