Several laws provide rights and some protection related to using credit. Become familiar with them. Some of the major provisions provided by each law are listed below.

The Truth in Lending Act requires useful, uniform disclosures of the costs and terms of credit cards and other loans. This law also limits your liability for a lost or stolen credit card to $50 per card. For instance, if a thief used your card to buy $500 worth of products or services, the most you could be held responsible for paying is $50. Note that the liability is $50 per card.

The Fair Credit Billing Act--which is part of the Truth in Lending Act--protects you against billing mistakes. If you have a problem with the quality of goods or services bought with a credit card and you have not been successful in settling the problem with the retailer, you may be able to withhold payment until the matter is settled. Disputed items or services must cost $50 or more.

The Fair Credit Reporting Act regulates the type of information that can be in your credit report, outlines who can get a copy of your report, limits how the report can be used, gives you the right to get a copy of your credit report, and to dispute any errors.

The Equal Credit Opportunity Act sets guidelines to prevent lenders from discriminating on the basis of race, color, religion, national origin, gender (sex), marital status, age, or receipt of income from public assistance programs.

The Fair Debt Collection Practices Act provides guidelines for debt collectors. Collection agencies cannot call you before 8:00 a.m. or after 9:00 p.m., call you at work if your employer forbids personal calls, use abusive or obscene language, or theaten to use violence or criminal means against your family or property.

Prepared by Cathy Faulcon Bowen, assistant professor, Department of Agricultural and Extension Education.