Know Your Rights — State & Federal Protections

The Fair Credit Reporting Act (FCRA) is the foundation of your credit rights. Enacted in 1970, it governs how credit bureaus collect, share, and correct your information.

Spec: 800×600px Visual: 6 cards in a 3×2 grid, each with an icon and a right: 1. 📋 Right to know what's in your file 2. 🔔 Right to be told when information is used against you 3. ✏️ Right to dispute inaccurate information 4. ❌ Right to have outdated info removed (7-10 year limits) 5. 🔒 Right to limit who sees your report 6. 💰 Right to sue violators for damages Your FCRA rights in plain English: 1. You can see your file. You're entitled to a free copy of your credit report from each bureau once per year (currently free weekly through AnnualCreditReport.com). 2. borrowers are required to be told when your report is used to deny you. If a lender, employer, or landlord takes "adverse action" based on your credit, they MUST tell you which bureau they used, so you can check for errors. 3. You can dispute anything you believe is wrong. The bureau are required to investigate within 30 days. If they can't verify the item, they is generally required to remove it. 4. Old information must come off. Most negative items: 7 years. Bankruptcies: 7 years (Chapter 13) or 10 years (Chapter 7). Unpaid tax liens: indefinitely in some cases. 5. Your report isn't public. Only entities with a "permissible purpose" can pull your report: creditors you've applied to, employers (with your written consent), landlords, insurance companies, and government agencies. 6. You can sue. If a bureau or creditor violates the FCRA, you can sue for actual damages plus attorney's fees. Class action lawsuits have resulted in millions in settlements.

The Credit Repair Organizations Act (CROA) specifically protects consumers from credit repair warning signs.

Spec: 800×400px Visual: Shield graphic with 4 protections listed: 🛡️ Must provide written contract BEFORE work begins 🛡️ 3-day cancellation right (no penalty) 🛡️ Cannot charge fees UNTIL services are performed 🛡️ Must tell you your right to dispute on your own for free What CROA requires credit repair companies to do: 1. Give you a written disclosure explaining your rights 2. Provide a written contract detailing services, terms, and total cost 3. Wait 3 days after you sign before starting (your cancellation window) 4. Not charge any fee until after the service is fully performed What CROA prohibits:

• Making false claims about their services
• Advising you to lie on credit applications
• Creating a "new credit identity" for you
• Charging before performing services

If a company violates CROA:

• You can cancel the contract and get a provider-stated refund
• You can sue for actual damages OR the amount you paid (whichever is greater)
• You may also recover punitive damages and attorney's fees
• Report violations to your state Attorney General and the FTC

The Fair Debt Collection Practices Act (FDCPA) protects you from abusive, deceptive, or unfair debt collection.

Spec: 800×600px Visual: Two-column table with green (CAN) and red (CAN'T): CAN ✅:

• Call you between 8am-9pm
• Send you letters
• Report the debt to credit bureaus
• Sue you in court
• Contact you via email or text (with limits)

CAN'T ❌:

• Call before 8am or after 9pm
• Threaten violence or arrest
• Use profanity or insults
• Call your workplace (if you tell them to stop)
• Tell your friends/family about the debt
• Lie about the amount owed
• Pretend to be law enforcement
• Collect more than you owe

Your most powerful FDCPA rights: Right to validation: Within 5 days of first contact, the collector must send you written notice of the debt amount, creditor name, and your right to dispute. If you dispute within 30 days, they must validate before continuing collection. Right to stop contact: Send a written "cease and desist" letter (certified mail). They can only contact you one more time — to confirm they'll stop or to notify you of a specific legal action. Right to be free from harassment: Repeated calls designed to annoy, threats, obscene language, and public shaming are all violations. Right to accurate information: A collector can't misrepresent the amount, add unauthorized fees, or falsely claim to be attorneys or government officials. If your FDCPA rights are violated:

• You can sue for up to $1,000 in statutory damages per case
• Plus actual damages (emotional distress, lost wages)
• Plus attorney's fees
• File complaints with CFPB (consumerfinance.gov) and your state AG

If you're active-duty military, a veteran, or a military family member, you have additional protections:

Spec: 800×500px Visual: Military shield/emblem with two sections: TOP — MLA (Military Lending Act):

• 36% rate cap on consumer credit
• No mandatory arbitration
• No prepayment penalties
• No waivers of legal rights

BOTTOM — SCRA (Servicemembers Civil Relief Act):

• 6% interest rate cap on pre-service debts
• Protection from eviction
• Right to terminate leases
• Protection from default judgments

Military Lending Act (MLA):

• Caps the interest rate (MAPR) at 36% for all covered consumer credit
• Covers payday loans, vehicle title loans, refund anticipation loans, installment loans, and credit cards
• Prohibits mandatory arbitration clauses
• Prohibits prepayment penalties
• Applies to active-duty servicemembers and their dependents

Servicemembers Civil Relief Act (SCRA):

• Caps interest at 6% on debts incurred BEFORE active duty (mortgages, credit cards, car loans)
• borrowers are required to request the rate reduction in writing and provide military orders
• Protects against foreclosure without a court order
• Allows termination of residential and auto leases when deployed
• Protects against default judgments in lawsuits

How to get these protections: Contact your creditors in writing. Include a copy of your military orders. If they refuse, contact your base legal assistance office (free) or file a complaint with the CFPB.

Knowing your rights means knowing where to enforce them:

Spec: 800×600px Visual: 6 resource cards with icons and URLs: 1. CFPB — consumerfinance.gov/complaint (most powerful) 2. FTC — reportfraud.ftc.gov (identity theft, scams) 3. State Attorney General — [your state AG website] 4. NMLS — nmlsconsumeraccess.org (verify lender licenses) 5. Legal Aid — lawhelp.org (free/low-cost legal help) 6. HUD Counselors — hud.gov/housing/counseling (housing + credit counseling) CFPB (Consumer Financial Protection Bureau)

• What: File complaints about banks, lenders, credit bureaus, debt collectors
• Why it works: CFPB forwards your complaint to the company, which must respond within 15 days. Companies hate CFPB complaints — they often resolve issues to make them go away.
• URL: consumerfinance.gov/complaint/

FTC (Federal Trade Commission)

• What: Report identity theft, scams, fraud
• Identity theft: identitytheft.gov (step-by-step recovery plan)
• Report fraud: reportfraud.ftc.gov

Your State Attorney General

• What: Report state law violations, high-cost lending, scams
• Find yours: Search "[your state] attorney general consumer complaint"
• Many states have additional consumer protection laws beyond federal

Free Legal Help

• Legal Aid: lawhelp.org — Find free legal help in your area
• NFCC Counselors: nfcc.org — Free or low-cost credit counseling
• HUD Housing Counselors: hud.gov/housing/counseling — Free housing and credit advice
• Military: Your installation's legal assistance office (JAG)

Wage Garnishment Protections If a creditor has obtained a court judgment, they may try to garnish your wages. Key limits:

• Federal limit: Creditors can take no more than 25% of your disposable earnings (or the amount over 30× minimum wage, whichever is less)
• Some states limit it further (some ban wage garnishment entirely for consumer debts)
• Certain income is 100% exempt: Social Security, SSI, VA benefits, railroad retirement
• You can challenge a garnishment in court

Spec: 800×500px Visual: US map with color coding showing variation in consumer-protection context:

• Dark green: Strong protections (CA, NY, MA)
• Medium green: Moderate protections
• Light green/yellow: Basic federal protections only

Note: "Your state may provide additional protections beyond federal law. Check creditdoc.co/state/ for your state's specific lending laws."