COMPLAINING ABOUT CREDIT
Complaining to Federal Enforcement Agencies
First try to solve your problem directly with a creditor.
Only if that fails should you bring more formal complaint
procedures. Here's the way to file a complaint with the Federal
agencies responsible for carrying out consumer credit
protection laws.
Complaints About Banks. If you have a complaint about a
bank in connection with any of the Federal credit laws--or if
you think any part of your business with a bank has been
handled in an unfair or deceptive way--you may get advice and
help from the Federal Reserve. The practice you complain about
does not have to be covered by Federal law. Furthermore, you
don't have to be a customer of the bank to file a complaint.
You should submit your complaint--in writing whenever
possible--to the Division of Consumer and Community Affairs,
Board of Governors of the Federal Reserve System, Washington,
D.C. 20551, or to the Reserve Bank nearest you. Be sure to describe the bank practice
you are complaining about and give the name and address of the bank involved.
The Federal Reserve will write back within 15 days--sometimes with an answer, sometimes telling you that more
time is needed to handle your complaint. The additional time is required when complex issues are involved or when the complaint
will be investigated by a Federal Reserve Bank. When this is the case, the Federal Reserve will try to keep you informed
about the progress being made.
The Board supervises only state--chartered banks that are
members of the Federal Reserve System. It will refer complaints
about other institutions to the appropriate Federal regulatory
agency and let you know where your complaint has been referred.
Complaints About Other Institutions. Many of these agencies do not handle individual complaints; however, they will use information about
your credit experiences to help enforce the credit laws.
Penalties Under the Laws
You may also take legal action against a creditor. If you
decide to bring a lawsuit, here are the penalties a creditor
must pay if you win.
Truth in Lending and Consumer Leasing Acts. If any
creditor fails to disclose information required under these
Acts, or gives inaccurate information, or does not comply with
the rules about credit cards or the right to cancel certain
home--secured loans, you as an individual may sue for actual
damages--any money loss you suffer. In addition, you can sue
for twice the finance charge in the case of certain credit
disclosures, or, if a lease is concerned, 25 percent of total
monthly payments. In either case, the least the court may award
you if you win is $100, and the most is $1,000. In any lawsuit
that you win, you are entitled to reimbursement for court costs
and attorney's fees.
Class action suits are also permitted. A class action suit
is one filed on behalf of a group of people with similar
claims.
Equal Credit Opportunity Act. If you think you can prove
that a creditor has discriminated against you for any reason
prohibited by the Act, you as an individual may sue for actual
damages plus punitive damages--that is, damages for the fact
that the law has been violated--of up to $10,000. In a
successful lawsuit, the court will award you court costs and a
reasonable amount for attorney's fees. Class action suits are
also permitted.
Fair Credit Billing Act. A creditor who breaks the rules
for the correction of billing errors automatically loses the
amount owed on the item in question and any finance charges on
it, up to a combined total of $50--even if the bill was correct.
You as an individual may also sue for actual damages plus twice
the amount of any finance charges, but in any case not less
than $100 nor more than $1,000. You are also entitled to court
costs and attorney's fees in a successful lawsuit. Class action
suits are also permitted.
Fair Credit Reporting Act. You may sue any credit
reporting agency or creditor for breaking the rules about who
may see your credit records or for not correcting errors in
your file. Again, you are entitled to actual damages, p]us
punitive damages that the court may allow if the violation is
proved to have been intentional. In any successful lawsuit, you
will also be awarded court costs and attorney's fees. A person
who obtains a credit report without proper authorization--or an
employee of a credit reporting agency who gives a credit report
to unauthorized persons--may be fined up to $5,000 or
imprisoned for one year, or both.
Electronic Fund Transfer Act. If a financial institution
does not follow the provisions of the EFT Act, you may sue for
actual damages (or in certain cases when the institution fails
to correct an error or recredit an account, for three times
actual damages) plus punitive damages of not less than $100 nor
more than $1,000. You are also entitled to court costs and
attorney's fees in a successful lawsuit. Class action suits are
also permitted.
If an institution fails to make an electronic fund
transfer, or to stop payment of a preauthorized transfer when
properly instructed by you to do so, you may sue for all
damages that result from the failure.
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