Know the rules lenders have to follow.
Federal law gives you specific protections before, during and after you borrow. Here is what each major law covers, what it means in practice, and where to turn when a lender or collector crosses the line.
- Disclosure before you sign. You must see the APR and total cost in writing.
- Fair treatment. Lenders cannot discriminate on protected characteristics.
- Protection from abuse. Collectors face strict limits on how they contact you.
Written by the Lendli Editorial Team under our editorial policy. Last reviewed .
Where to file a complaint
Banks, lenders, debt collectors, credit bureaus. consumerfinance.gov/complaint FTC
Scams and unfair business practices. ReportFraud.ftc.gov State regulator
Licensed lenders in your state, through your state's financial or banking department State attorney general
Consumer protection complaints and fraud
Keep copies of your loan documents, letters and a written timeline before you file.
The main federal protections
Each law covers a different stage of borrowing.
| Law | What it does for you | In practice |
|---|---|---|
| Truth in Lending Act (TILA) | Requires clear disclosure of loan costs | You get the APR, finance charge, amount financed and total of payments before you are committed |
| Equal Credit Opportunity Act (ECOA) | Bans credit discrimination | Covers every stage of a credit decision; protected traits include race, color, religion, national origin, sex, marital status, age and public-assistance income |
| Fair Credit Reporting Act (FCRA) | Governs credit reports | You can see your reports, dispute errors, and learn when a report was used against you |
| Fair Debt Collection Practices Act (FDCPA) | Limits third-party debt collectors | No harassment, threats or false statements; you can dispute a debt and ask for validation |
| Servicemembers Civil Relief Act (SCRA) | Protects those entering active duty | Interest on debts taken before service can be capped at 6% during service |
| Military Lending Act (MLA) | Protects active-duty members and dependents | Caps the Military APR at 36% on most consumer credit and bans some terms |
If you are turned down
If a lender denies your application or offers worse terms, you are generally entitled to an adverse action notice. It tells you the decision, the main reasons or how to request them, and, if a credit report played a part, which bureau supplied it.
You then have the right to a free copy of that report within 60 days, and to dispute anything inaccurate with the bureau and the company that reported it.
What the notice should include
- The action taken on your application
- The specific reasons, or how to get them
- The credit bureau used, if any
- Your right to a free report and to dispute errors
- A statement of your ECOA rights
Your rights with debt collectors
The FDCPA applies to third-party collectors, not usually to the original lender. Within five days of first contacting you, a collector must send a validation notice showing the amount and the creditor.
If you dispute the debt in writing within the validation period, the collector must pause collection until it sends verification.
Collectors cannot
Call before 8 a.m. or after 9 p.m. your time without your agreement, threaten arrest, use abusive language, or misstate what you owe.
Other rights worth knowing
A few protections people often miss.
Stopping autopay
Under the Electronic Fund Transfer Act, you can stop a preauthorized debit by telling your bank at least three business days before it is scheduled.
Credit freezes
Freezing your credit at each bureau is free and does not affect your score.
State protections
Many states set rate caps and licensing rules for lenders. Your state financial regulator can tell you which apply.
Borrow with the full picture
Check your loan options, then review every disclosure before you sign.