Exercising Your Credit Card Application Rights

So you've spent years working to make sure that you have good credit, and make sure that you never miss a payment. So why is it that you were denied a good credit credit card? If you don't believe that your credit card application was given proper consideration, you may have reason to file a complaint about your experience. Everyone has the right to obtaining a fair credit credit card.

No matter what the situation or how wronged you think you may have been, it is always best to first try and resolve the issue with the banking institution or creditor involved. Mistakes can be made; the wrong box can be checked. Resolving your issue could be as easy as a 10 minute phone call.

The State Is Protecting Your Credit Card Rights

Any complaints about the countries banking institutions should be reported to the Federal Reserve System. The Federal Reserve System should be your next stop because it actually deals with consumer complaints against any of the banks in its system.

State-chartered banks that are part of the Federal Reserve report to one of 12 Federal Reserve Banks located in different parts of the country. If though you have a complaint about an institution that is not a part of the Federal Reserve your complaint is forwarded to the correct federal agency that regulates the specific type of institution involved in your dispute.

Within short period of time regardless of who is handling your complaint, the Federal Reserve will notify you that your request is either being processed or was forwarded. Another option is to contact the appropriate federal agency for handling your dispute.

Contact the Federal Reserve in order to receive a complete list of the federal agencies responsible for regulating the financial industry. Do not contact these agencies expecting them to mediate on your behalf. Only a few will handle individual complaints. Your experience will though be used by all of the agencies to enforce credit laws.

All complaints should be submitted in writing. That includes those made to the Federal Reserve. Address your complaint to:

Division of Consumer and Community Affairs
Board of Governors of the Federal Reserve System
Washington, DC 20551

The Federal Reserve will need some information in order to properly handle your complaint. So be thorough and provide the following information:

• The complete information about the bank such as its name and address.
• A short but detailed description of the situation.
• All the documents that might help the Federal Reserve investigate the situation. Note: Do not mail original copies. You must retain these for your records
• Put your signature and date the letter for tracking purposes.

Expect a response within 15 working days of the receipt of your letter. The response from the Federal Reserve Bank will give you the information whether the Federal Reserve will be investigating the complaint or if it had to be send on to another agency.

The Federal Reserve will investigate complaints against state-chartered member banks. Your complaint is then forwarded to the member bank. The Reserve Bank responsible for resolving the dispute will ensure that the bank sends back a response and that your complaint has been investigated and addressed. If indeed your rights have been violated by the bank or the credit card company, the Federal Reserve will let you know about that fact and specify what corrective action is to be taken by the member bank.

The Federal Reserve does not resolve disputes that are related to factual or contractual disputes. If your complaint is related to a banks policy or procedure that is also not resolved by the Federal Reserve Bank as long as that policy hasn't caused a violation of your credit rights. That isn't to say that you should file a complaint. Many banking institutions will voluntarily work to resolve the issue when they discover that you have filed a complaint. In the event that your problem is not resolved and it doesn't appear that it ever will be, the Federal Reserve recommends that you consult a lawyer to determine what legal recourse you may have against the offending institution.

There Are Rules for the Credit Card Application Process

There are several different penalties that can be applied in the event that you do take legal action against a bank or other creditors by bringing a lawsuit.

The Truth in Lending and Consumer Leasing Acts protect you in the event that a creditor does not disclose certain information or gives you inaccurate information. You are also protected from creditors that do not meet all of the standards set for the credit card application process. You also have the right to cancel some types of home-secured loans. This act makes it possible for you to sue for any monetary loss that you may suffer.

From the moment that you apply for a credit card you are protected. Whether it is for instant online credit card approval or a 0% APR balance transfer credit card application, your right to obtain credit is protected. Once you have established credit you are still protected.

If you suffer damages due to inaccuracy on the part of a creditor you have several options in which you can sue for damages. This includes the right to recoup twice the finance charge and in some cases 25% of the total monthly payments. You are also entitled to full reimbursement of attorney fees and court costs. Sometimes you as an individual may not even bring the lawsuit, it could be a part of a class action suit. This falls under the same jurisdiction.

If you believe that you will be able to prove a creditor is biased against you, you have rights in the Equal Credit Opportunity Act. You are entitled to the best credit card interest available to people who receive similar scores on their credit applications. If you feel that a creditor has unjustly denied you credit and it is proven, damages and punitive damages can be assessed. Class action suits are also permitted under this act. Those that win their lawsuits will have a fair amount for attorney fees and their court costs.

Any creditor that does not comply with the rules set forth for the process of billing errors correcting will automatically lose the money owed on the questionale item under the Fair Credit Billing Act. This is automatic up to a combined total of $50 even if the bill was correct. Every credit card holder is given the right to file a lawsuite for actual damages and the double amount of any incurred finance charges. This cannot be less than $100 but no more then $1,000. As with the other acts you are eligible for attorney's fees and court costs in the even of a successful lawsuit. This does apply to class action suits as well.

The Fair Credit Reporting Act states that you have the right to sue any creditor or credit-reporting agency for not allowing you to check your credit reports or for ignoring your request to correct errors on your file. Same as above if you win the lawsuit you are entitled to punitive damages and actual damages. This will also include legal fees and court costs. Creditors that obtain your credit report with no proper authorization or if an some one working at a credit-reporting agency illegally releases your credit report can be imprisoned for a year or fined up to $5,000. In some cases both penalties will be assessed.

If a bank or another financial institution does not follow the Electronic Fund Transfer Act, you have a right to sue for the actual damages against it. In some cases if the institution does not remove incorrect data or re-credit an account, damages can be assessed for up to three times. The standard limitations for punitive damages are not less than $100 and no more than $1000.

Whether you are applying for a credit card, home equity low interest credit card, or a bank secured credit card your rights are protected. If you feel that you have been violated, then immediately report your dispute.

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