You may assume that a bank, credit bureau, employer or debt collector holds the power when something goes wrong. Federal consumer protection laws can give you rights that may not seem obvious when you face a disputed charge, a troubling report or an unexpected decision.
Here are five consumer rights worth knowing.
Credit bureaus must investigate disputed information
When you dispute inaccurate information on your credit report, the credit reporting agency generally must investigate and report the results within 30 days. The Fair Credit Reporting Act requires a review of information you identify as inaccurate or incomplete. If the investigation does not support the information as reported, the agency may need to correct or delete it.
Banks may have to provide provisional credit
For covered unauthorized electronic fund transfers, Regulation E can require your bank to provisionally credit your account when it cannot finish its investigation within the initial 10-business-day period. That temporary credit can give you access to the disputed amount while the bank continues its review. Knowing when this protection may apply can help you understand what to expect while your claim remains under investigation.
Job applicants can review background-check information
If an employer plans to take adverse action based on a background report, federal law generally requires the employer to give you a copy of the report and a Summary of Rights before making the final decision. You can then check for mistakes and dispute inaccurate or incomplete records. This protection can matter when a report contains an incorrect criminal record or employment history.
Adverse action can trigger another free credit report
A denial based on information from a consumer report can give you a separate right to request a free copy of the report that influenced the decision. The company taking the adverse action generally must identify the reporting agency involved, and you typically have 60 days to request your free copy. Reviewing that report can help you find an error you might not notice through a routine credit check.
Debt collectors must provide validation information
A debt collector generally must give you information about the debt and a 30-day period to dispute it. Federal debt collection rules require a validation notice during the initial communication or within five days afterward. If you submit a written challenge within that period, the collector generally must stop pursuing the disputed amount until it sends information supporting the claim.
Put your consumer rights to work
Keeping notices, reports and communications can help you show what happened if a company failed to follow these requirements. Reviewing those records with an attorney can help you determine whether you have a legal claim and what steps you should take next.