Factors Influencing Creditworthiness and Consumer Credit Rights, Slides of Fundamentals of E-Commerce

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Factors That Determine

Creditworthiness

Annual income

Length of time at current residence

Length of time at current job

Type of residence

Age

Employment

Factors That Determine

Creditworthiness

(cont’d)

Number of bank accounts

Number of credit cards

If you have a telephone

Credit history

Note: All the factors provide informationhistorically linked with individuals that aregood credit risks.

Your Rights With the Credit Bureau

70% of Americans have at least one negativeremark on their credit report and almost 50%of reports contain incorrect or obsoleteinformation.

Review your report and report inaccuracies forinvestigation.

If applicable, add a statement.

If Your Application Is Rejected

Apply for a card withanother institution

Find out WHY youwere rejected. Then,take steps to correctthe problem.

Resolving Billing Errors

(cont’d)

Send a description, including amount in dispute, tothe billing inquiry address.

You should receive notice from the card issuer thatan investigation is under way within 30 days. - The card issuer has 90 days or two billing cycles toresolve the dispute. - You may appeal any unfavorable outcome.

Resolving Billing Errors

(cont’d)

You may sue the card issuer in small claimscourt.

Note: During any appeal the card issuer hasthe right to report your account as delinquent.This could have an adverse effect on yourcredit rating.

Consumer Credit Laws

(cont’d)

Equal CreditOpportunity Act of 1975

Equal CreditOpportunity Act(amended 1977) - Fair Debt CollectionPractices Act of 1978

Consumer Credit Laws

(cont’d)

Fair Credit ReportingAct of 1971

Fair Credit ReportingReform Act of 1996