The lending world has been upside down, on its side and may now just be returning to being right side up. No matter what the lending industry is going through, you as a borrower have rights. Before you apply for a loan, mortgage or credit account, make sure you know your rights. This ways, if your rights are violated, you can pursue the legal actions required to protect your rights.
The Equal Credit Opportunity Act
One of the first laws you should be aware of is the Equal Credit Opportunity Act, which is also known as Regulation B or Reg B. The law prohibits creditors and lenders from using marital status or the sex of the applicant to make a lending decision. A later amendment restricts lenders from using religion, public assistance, national origin, race, color or age to make lending decisions.
Fair Credit Reporting Act
The Fair Credit Reporting Act is another law that borrowers and prospective borrowers should be aware of when applying for a loan or credit. The law says that the applicant has the right to the same information that the lender does and uses to make its lending decision. The aspect of this law that most are familiar with is that it allows consumers one free credit report per year. If a consumer is denied for credit or is a victim of identity theft, this law also permits them to order a free credit report to see what may have caused the denial. Consumers can order their free credit reports at www.freeannualcreditreport.com.
These are not the only laws that pertain to borrowers. These are two of the primary laws and rights you should be aware of though.
