Legal Rights Regarding Credit Cards
- Under the Truth in Lending Act (TILA), all credit card terms must be in plain language and given to the consumer in writing. Any changes made to the terms of the credit card must also be provided in writing.
- The Equal Credit Opportunity Act requires that credit card issuers may not discriminate against a card holder or applicant based on race, color, religion, national origin, sex, marital status or age, or because the applicant's income derives from a public assistance program.
- Under the Fair Credit Reporting Act, each consumer has the right to a yearly free inspection of their credit report. Consumers also have the right to demand any party claiming a credit item on their report provide proof of the claim, as well as the right to dispute claims they believe are in error.
- The CARD Act prevents card issuers from increasing interest rates unless the card was issued with a promotional rate, or a variable rate, or if the holder is more than 60 days late with a payment.
Statutes of Limitation
- Depending on the state, card issuers are limited in how long they have to file a lawsuit on an unpaid credit card debt, ranging from three to 10 years.