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[02:53:57 AM Monday, March 12, 2007]
Credit complaint after credit card offers
Sometimes you just need to file a credit complaint. While trying to resolve any issues with the creditor, and you cannot get them resolved, then a credit complaint is the next step. Written complaints can be sent to the federal agencies that are responsible for enforcing your credit protection.
Filing a credit complaint
If you have ever had a complaint about a financial institute (whether it is a bank or credit card company) the Federal Reserve System may be able to help. The Federal Reserve System delves into the complaints of credit consumers that are taken out against state chartered banks. One of the 12 Federal Reserve Banks will investigate your complaint around the USA.
If you have a complaint against a bank or a credit card company, you can write directly to one of the Federal Reserve Banks referring what your complaint is. While many of these agencies do not handle complaints individually, they use your credit history to help enforce the credit laws. This serves as a great reason to keep your credit score as high as possible.
When you write to the Federal Reserve to file a complaint, you should send it to the Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington D.C. 20551. You have to include your name, bank address along with a small description of what your complaint consists of. If you have copies of documentation to help your case, you can include it as well. Sign and date the letter before sending it in.
The Federal Reserve Bank tries to answer to all complaints within 15 business days so wait until this time has passed to contact them. They will let you know whether they will in fact go ahead and investigate your complaint or not. If they will not investigate your claim then they will forward you to another agency that will help you.
Complaints investigated by the Federal Reserve (when talking about state chartered banks) will be analyzed by the Reserve Bank in an efficient manner. If the Federal Reserve finds that a regulation of its has been violated by the bank then they will inform you and correct the action the bank had taken previously against you.
The Federal Reserve does investigate all the complaints about the banks that they regulate; it does not mean they have the authority to resolve all problems. For instance, factual or contractual disputes involving bank policies will not be resolved by the Federal Reserve. These complaints must be dealt with by the bank itself. Always try and resolve your problem with the bank first, no matter what the problem is. Involving the Federal Reserve should always be your last resort.
Credit Penalties
If you do end up pursuing a lawsuit against your creditor, there are some penalties the creditor must pay if you win:
• Truth in lending and consumer leasing acts. If a creditor does not disclose required information or decides to give inaccurate information under these acts than an individual can seek money for damages and money loss. An individual can also sue for twice the finance charge for certain credit disclosers! In any case if you win you will be awarded reimbursement for court costs and attorney fees.
• Equal credit opportunity act. If you have proof that your creditor has discriminated you for any reason under this act then you can sue for punitive damages. You can be awarded up to $10,000 in reimbursements and court costs.
• Fair Credit Billing Act. Any creditor that decides to break the rules of correcting billing errors will lose the amount owed automatically, as well as any finance charges that accompany it. If this happens, an individual has the opportunity to sue for up to $1000 in damages as well as court and attorney fees.
• Fair Credit Reporting Act. If a credit reporting agency or creditor breaks the rules about the viewing of your credit reports or about fixing mistakes in your report than you can sue for damages. If you can prove this as intentional then you can fine for up to $5000.
• Electronic Fund Transfer Act. If a financial institution (bank, credit card company, etc.) does not follow the EFT Act than you can sue for damages, up to three times the amount! If the institution does not make the electronic fund transfer when you instruct them to then you can sue for all damages resulting in their actions.
While yes, there will be times when you absolutely need to take a creditor to court this is not always the most advisable action to take. Going to court should be the last action an individual takes because most disputes can be worked out between them and the creditor. If not, the Federal Reserve Bank can step in and mediate, although the process can be long and often tough to work through. Mending problems between you and your financial institute should be tried first.
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