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GIZMO !
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Bulletin Board |
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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, as listed on
page 43 of this handbook. 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. Or you may use the listing on page 42 of this booklet to write
directly to the appropriate agency.
Complaints
About Other Institutions. On page 42 of this booklet, you will also find the
names of the regulatory agencies for other financial institutions and for
businesses other than banks. 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 re-credit 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 pre-authorized transfer when properly instructed by you to do so, you may sue for all damages that result from the failure.