Consumer Handbook to credit protection

-- Bankruptcies must be taken off your credit history after 10 years. . -- Suits and judgments, tax liens, arrest records, and most other kinds of unfavorable information must be dropped after r 7 years. Your credit record may not be given to anyone who does not have have a legitimate business need for it. Stores to which you are applying for credit or prospective employers may examine your record; curious neighbors may not. Billing Mistakes. In the next chapter, you will find the steps teps to take if there's an error on your bill. By following these steps, you can protect your credit rating. OTHER ASPECTS OF USING CREDIT

The best way to keep up your credit standing is to repay all all debts on time. But there may be complications. To protect your credit rating, you should learn how to correct mistakes and misunderstandings that can tangle up your credit accounts.

When there's a snag, first try to deal directly with the the creditor. The credit laws can help you settle your complaints without a hassle.

What Laws Apply?

FAIR CREDIT BILLING ACT sets up procedures requiring creditors itors to promptly correct billing mistakes; allowing you to withhold payments on defective goods; and requiring creditors to promptly credi your payments.

IN LENDING gives you three days to change your mind about bout certain credit transactions that use your home as collateral; it also limits your risk on lost or stolen credit cards. Billing Errors

Month after month John Jones was billed for a lawn mower he neve never ordered and never got. Finally, he tore up his bill and mailed back the pieces--just to try to explain things to a person instead of a computer.

There's a more effective, easier way to straighten out these hese errors. The Fair Credit Billing Act requires creditors to correct errors promptly and without damage to your credit rating. A Case of Error. The law defines a billing error as any charge: rge: -- for something you didn't buy or for a purchase made by someone not authorized to use your account; ; -- that is not properly identified on your bill or is for an amount different from the actual purchase price or was entered on a date different from the purchase date; or r -- for something that you did not accept on delivery or that was not delivered according to agreement. . Billing errors also include: ude: -- errors in arithmetic; ; -- failure to show a payment or other credit to your account; ; -- failure to mail the bill to your current address, if you told the creditor about an address change at least 20 days before the end of the billing period; or r -- a questionable item, or an item for which you need more information. . In Case of Error: If you think your bill is wrong, or want more more information about it, follow these steps: 1. Notify the creditor in writing within 60 days after the the first bill was mailed that showed the error. Be sure to write to the address the creditor lists for billing inquiries and to tell the creditor: