Credit 2

📚 Module 2: The Laws That Protect You

"Know Your Rights, Protect Your Power"

Welcome back to Grahamith Global Solutions' Credit Education Course.
Now that you understand the structure of credit, it's time to learn something just as important:

The federal laws that protect your credit rights.

When you know the laws, you don’t just play the game —
👉🏽You control the game.

🧠 Main Teaching Points

1. The Fair Credit Reporting Act (FCRA)

The FCRA is the foundation of credit law in the U.S.

It gives you powerful rights, including:

  • The right to accurate and verifiable information on your credit report
  • The right to dispute and correct errors
  • The right to have outdated or unverifiable information removed
  • The right to be notified if your credit information is used against you (example: denial of credit)

Key Tip:
If an account cannot be proven accurate and complete during a dispute, it must be deleted by law.

Real Example:
If a collection account shows the wrong balance or dates, and they can’t fix it in 30 days after you dispute it, it must be corrected or removed.

2. The Fair Debt Collection Practices Act (FDCPA)

The FDCPA protects you from harassment by debt collectors.

It says debt collectors:

  • Cannot threaten, lie, or harass you
  • Must send you a written notice of the debt within 5 days of first contacting you
  • Must stop all collection efforts if you request validation of the debt

Key Tip:
If a debt collector can't prove you owe the debt legally, they have no right to continue collecting it.

Student Reminder:
✅ You have the right to ask for proof — don’t let debt collectors intimidate you.

3. The Truth in Lending Act (TILA)

TILA makes lenders be honest about the true cost of credit.

They must:

  • Clearly explain loan terms
  • Disclose annual percentage rates (APR)
  • Reveal all fees and conditions up front

Why It Matters:
TILA protects you from hidden fees, misleading loan terms, and unfair surprises.

Student Tip:
✅ Always review the APR, not just the "low monthly payment" when borrowing.

4. Other Important Consumer Protection Rights

Other laws working in your favor:

  • Equal Credit Opportunity Act (ECOA): Prevents discrimination based on race, gender, age, religion, or marital status when applying for credit.
  • Fair and Accurate Credit Transactions Act (FACTA): Protects your personal information and allows free credit report access every year.

🎯 Lesson Recap

When you understand your rights, you protect yourself better.

  • You can challenge wrong or incomplete information legally.
  • You can stop abusive debt collection tactics legally.
  • You can make smarter borrowing decisions legally.

👉🏽 Credit education without legal knowledge is incomplete.
At Grahamith, we teach you the full system — not just how to fight, but how to win.

✅Next Up:
Building a Dispute Strategy — because knowing the law is powerful, but using it correctly changes everything.