Consumers should always request an explanation of the underlying reasons
for a creditor's decision. Consumers should ask a creditor to explain
the items on the credit report that caused the extension of less favorable
terms, how the credit report differs from customers who received significantly
more favorable terms, and the particular details of such terms. In cases
when consumers believe that their credit has been damaged, what is the
next best course of action? Here a few simple tips:
Request a written statement explaining the reasons the creditor did not
give you the requested credit terms
If credit is accepted on terms worse than those requested, a creditor may
not be required to provide any notice. Before an offer is accepted or
the credit is used, consumers should ask for a written statement.
Request the reasons underlying a creditor's change in existing credit terms.
If a creditor reviews an account on its own initiative, based its decision
in part on any credit report, and takes an adverse action such as reducing
a credit limit or raising the interest, the creditor must also provide
notice of the credit reporting agency where it obtained the information
and provide notice to a consumer of his or her rights to get a free report
or dispute the information.
Obtain a credit report.
Consumers should utilize the notice from the creditor to obtain a free
credit report and examine and review it for a problem that caused the
creditor to offer less favorable terms. If a mistake is disputed and not
corrected, then a lawsuit may be required to solve the problem.
Loan Lawyers, our South Florida consumer rights and debt defense
attorneys help individuals with financial problems that cause hardship. The experienced
South Florida defense
attorneys at Loan Lawyers are here to explain and review your potential solutions for reorganizing
and repaying debts. To schedule a free consultation at any of our three
conveniently located offices, contact
Loan Lawyers today by calling (888) FIGHT-13 (344-4813).