|
The Informant: Volume 1 - Number 1
CONSUMER LAWS
THE FAIR CREDIT BILLING ACT
This act sets up procedures requiring creditors to promptly correct billing mistakes, allowing you to withhold payments on effective goods; and requiring creditors to promptly credit your payments.
TRUTH IN LENDING
This act gives you three days to change your mind about certain credit transactions that use your home as collateral; it also limits your risk on lost or stolen credit cards.
BILLING ERRORS
You get a bill month after month for a lawnmower that you never bought or received. The Fair Credit Billing Act
requires creditors to correct errors promptly without damage to your credit rating. Follow these steps to insure proper credit:
1. Notify the creditor in writing within 60 days after the first bill was mailed that showed the error. Be sure to write to the
addresses the creditor lists for billing inquiries, and to tell the creditor your name and account number and that you believe the bill contains an error and why you believe it is wrong.
2. Pay all parts of the bill that are not in dispute. However, while waiting for an answer, you do not have to pay the amount in question (the "disputed amount") or any minimum payments or financed charges that apply to it.
3. The creditor must acknowledge your letter within 30 days, unless the problem can be resolved within that time. Within two billing periods - but in no case longer than 90 days- either your account must be corrected, or you must be told why the creditor believes the bill is correct.
If the creditor made a mistake, you do not pay any finance charges on the disputed amount. Your account must be corrected, and you must be sent an explanation of any amount you still owe.
TIPS ON SAVING MONEY
There are no magic rules that will solve everyone's financial troubles--but here are a few handy tips to get you started...
1. Don't Spend Tomorrow's Income Today
None of us were born in debt. We start life with a clean slate--but then come the traps, the most common one being,
committing yourself to a future lifestyle that is predicated on your current lifestyle.
2. Keep Your Expenses Adjustable Over Time
Keep your fixed expenses as low as possible. Don't obligate yourself to long-term expenses, such as "buy now, pay later" deals. That way, if your income or lifestyle changes, you will be able to handle the change financially. In other words, make sure you don't commit
tomorrow's income today, and when your life changes, make sure your spending habits change along with it.
3. The Four Steps to Properly Setting Goals
First, set a positive attainable goal for yourself. Second, seta reasonable date for achieving that goal. Third, write it down! And fourth, STAY FOCUSED!
4. Where to Start
Get out a sheet of paper, a pen, and all of your credit statements. Write down all your creditors, the balance owed, and the monthly payment. More than likely, you are going to be surprised when you
tally up the total balances--but don't worry, because *this is your first step toward financial freedom*!
|
