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.
At Loan Lawyers, our South Florida consumer rights and debt defense attorneys help individuals with financial problems that cause hardship. To schedule a free consultation at any of our three conveniently located offices, contact Loan Lawyers today by calling 954-523-HELP (4357).