 Your credit application doesn't seem to be complete, Mrs. Howard. Oh, that's what I answered everything. Here, we need this information about your husband. They may not be aware of it, but Federal Reserve regulations say married women can apply for credit on their own. Boy, I waited a long time for a car like this. Well, you got it. Just sign these forms. Well, what's this one? It's flying. Some government red tape. I didn't want to hold you up any longer. They may not be aware of it, but Federal Reserve regulations say you must be told credit costs and the terms before you sign the contract. What's this about being passed due on our bank credit card? There's a purchase at the Star Shop two months ago that wasn't paid for. That's the dress I returned, remember? Oh, yes. And you called the bank to explain when last month's statement came, right? Yes. I explained it to them on the phone. They may not be aware of it, but Federal Reserve regulations say there is a right way to correct billing errors. We may not be able to make your loan for you, Mr. Boyle. The bank requires creditor insurance on all loans. And I'm afraid you won't be able to qualify for that insurance. Well, why? Your age. They may not be aware of it, but Federal Reserve regulations say you cannot be discriminated against because of age. Most violations of the Federal Reserve's new consumer credit regulations are inadvertent, but they do sometimes happen. That's why knowing your rights can be to your credit. Credit has become part of our lives. It helps us buy the things we need when we don't have the ready cash. Currently, American consumers are paying off more than $200 billion in personal loans, credit card bills, auto loans, and other installment credit, excluding mortgages. Now there are new regulations to help you and protect you when you borrow. Congress has passed a number of consumer protection laws in recent years and directed the Federal Reserve to draft the regulations that put them into effect. These regulations are enforced by 12 government agencies, including the Federal Reserve. One of the most important of these is the Equal Credit Opportunity Act, which states that you cannot be discriminated against because of your race, color, religion, national origin, marital status, sex, age, or if your income is from public assistance. Until Equal Credit Opportunity, many married women had little opportunity to build credit records of their own, even though they may have managed family finances or held jobs. Working women were once the rarest, but today they account for more than 40% of all job holders. Now, under Federal Reserve regulations, women can apply for credit on their own and build their own credit records. May I help you? Yes, please. I'd like to apply for a personal loan. I want to buy some furniture for my new apartment. Please, sit down. May I have your name? Yes, it's Jenny Franklin. Is that Mr. or Mrs.? Don't answer that, Jenny. The new regulations say your marital status and childbearing plans have no place in this transaction because you're asking for an unsecured loan, one that does not require collateral. The lender must judge your creditworthiness on the same standards he uses for all other borrowers. These could be... How long have you lived at your present address? I've lived there... Length of residence? What is your present salary? I'm making between... Your income? How long have you been employed at your current job? I've worked there for... Stability of employment? Do you have a charge at any department store? Yes, I have two charges at department stores. Do you have any major credit cards? Yes, I do. Have you ever had a loan before? Yes, when I was in college I had a school loan. How you've handled credit in the past? Do you have any other loans outstanding? Yes, I have a car loan. And present debts? Thank you. We'll give you an answer in a couple of days. Listen to that, Jenny. The Federal Reserve says you must be notified of the lender's decision within 30 days after receiving a completed application. And if the loan is refused, you must be given the reason in right. That's not fair. That doesn't make any more than I do. And they gave him a loan. And if you think you've been discriminated against, talk to the creditor. If you can't work it out, you may file a complaint with a proper government agency. What about the married woman? How have Federal Reserve regulations affected her? Once credit reports were made in her husband's name only. Now, generally whenever she uses her husband's credit account or is co-applicant on a loan, the credit history must be reported in her name as well as here. And that's vital, because one of the factors in qualifying for new credit is how you've handled credit before. Now a married woman may apply for credit on her own without her husband. Here, we need this information about your husband. Oh, I'm buying the washer and dryer out of my own salary. My husband has nothing to do with it. Equal credit opportunity also forbids credit discrimination solely because of age. Well, Mr. Boyle, as I said before, we normally require creditor insurance on all our loans, but you won't be able to get that insurance. But since everything else is in perfect order, we will make that loan for you. Oh, gee, that's great. In addition to equal credit opportunity, the Federal Reserve has issued other important regulations. For example, truth in lending requires that you be told how much your loan costs before you sign for it. Let's go back to the car dealer and see how it should happen. Boy, I've waited a long time for a car like this one. Well, you've got it. Just sign right here and you can drive it away. Well, what's this for? There's some government red tape, a statement of finance charges and other terms. You mean this is how much I'm paying for the loan? Yeah. Wow, that's really high, isn't it? Does everybody charge this much? If you want to shop around and find a cheaper loan, that's okay with me. All I can tell you is we wrap the whole thing up for you right here. It's for your convenience, but up to you. Exactly. It's up to you. Truth in lending doesn't tell a lender how much to charge, but the regulation says the lender must tell you how much the loan will cost, both in dollars and an annual percentage rate. You should find this disclosure on all credit contracts. It's there to help you shop for the best credit buys. So look for it. First National, can you please give me your current rate on auto loan? I'd also like some information on leasing a car. Another Federal Reserve regulation requires fuller disclosure of the terms and cost of leasing consumer products such as cars and furniture. Remember them? The young couple with the merchandise they return but are still being billed for? Billing errors can happen, and there's a Federal Reserve regulation to help you get them corrected promptly, but you have to know how to use it. That's the dress I returned. Remember? Oh yes, and you called the bank to explain when last month's statement came, right? Yes. I explained it to them on the phone. Oh, I see. It says here we have to write about billing errors. What's wrong with calling? It's faster. A call can be forgotten. What's more, what proof do we have that we complained about the bill? We can keep a copy of the letter. And they can't charge interest on the $65? Not if we're right. I did return the dress. I know. Look, we still have time. Do you have the receipt? Yes. Great. Do you have some paper? Yes. Remember the creditor must receive your letter within 60 days after the bill was mailed to you. The creditor must acknowledge your letter within 30 days and correct the error within 90 days or show you why the bill is right. And once you've written to dispute the bill, the creditor cannot report you as being delinquent on this loan. Periodically, you'll get a statement like this that explains the procedures to follow to correct errors. Read it and become familiar with it to preserve your credit rights. But credit rights do not mean that you have a right to credit. In order to obtain credit, credit worthiness must be established and it must be preserved. Well, according to your own figures, Mr. Mrs. Allen, you have considerable debt. Are you making payments on time? Well, we haven't made one or two months, but... I really don't think it would be wise for you to take on any more financial obligations at this time. Look, clear up some of your present bills and we'll be glad to reconsider your application. The Equal Credit Opportunity Regulation does not guarantee that you will get a loan. You must show credit worthiness to qualify. But it does require that the lender apply the same credit standards equally to all applicants. Your credit worthiness is affected by the way you have handled credit in the past. Almost every time you borrow or charge, the transaction and how you handle it is reported to a credit bureau for the information of other lenders. I'm sorry, Mr. Alvarez. The credit bureau report indicates you've had some problems in the past. Oh, me? Hey, I've always tried to pay my bills on time. Now, if you think there's an error in the report, Mr. Alvarez, I have a suggestion. Now, under the Fair Credit Reporting Act, you have the right to ask the bureau to explain to you what your file contains and to reinvestigate any entry you don't agree with. Well, Mr. Alvarez, it seems you didn't pay your charge at foremost on time. You let your bill go for six months. But I couldn't help it. I was laid off. I told him that. And the minute I got back to work, I paid double, and he agreed to it. Isn't that there too? No, but if you'd like, a statement can be put in your file, giving the facts. The credit bureau must put your statement into the record, and if you request it, a corrected report must be sent to anyone who received a credit check in the preceding six months. These are some of the ways the new consumer credit laws and regulations can help you and protect you. But don't forget, only you yourself can create a good credit record. You do it by buying and borrowing within your means. You do it by paying your debts on time. Your credit rating can affect your whole life so protect it. Know your credit rights. Shop for the best credit terms. Ask if you don't understand something. If there's a problem, most lenders are more than willing to try to work things out. But if you can't, and you think a lender is violating the law, contact the agency responsible for carrying out the law. There are 12 government agencies that share this responsibility. If you're not sure which one you should contact, write or call your Federal Reserve Bank.