Credit cards are everywhere, thanks to widespread acceptance by vendors, and consumer-enticing rewards programs. This ubiquity, however, has attracted a criminal threat. Fortunately, there are laws to protect credit card holders.

Will there be a day when dollar bills and pocket change become obsolete? Considering the widespread use of the credit card, that day could come sooner rather than later. Everywhere you look, credit cards are widely accepted by vendors, and heavily used by consumers.

Naturally, such a popular financial tool attracts more than its fair share of identity thieves and unscrupulous credit card companies. To protect its citizenry, the U.S. government has enacted a number of credit card laws.

Playing fair

Whenever a credit card company or a creditor denies you credit, its decision is generally based on the data in your credit report. Thanks to the Fair Credit Reporting Act (FCRA), you have the right to learn exactly why you were denied credit. The company must provide you with an explanation, detailing the specific items in your credit report that prompted their decision. They must also inform you of the credit bureau that provided the damaging report.

Reports sometimes contain incorrect information, which can result in denials. By listening to the creditor's explanation, you might be able to uncover some erroneous data that you might be able to correct. The FCRA may be a way to not only reverse the company's initial decision, but prevent the same type of incident from happening again.

Created equal

It's unfortunate that in the land of liberty, the Equal Credit Opportunity Act would even be considered necessary. Unfortunately, our legislators had to make a law that prohibits a credit card company or creditor from denying you credit based on your sex, race, age, religion, marital status, receipt of public assistance, or national origin.

Notification is necessary

With the onset of identity theft, credit cards have become susceptible to illegal charges made by scam artists. To protect consumers from such financial fraud, the Fair Credit Billing Act was passed. If an unauthorized charge is made to your account, you have 60 days to notify the creditor, who must acknowledge receipt of your complaints within 30 days, and then resolve your dispute within two billing cycles.

Protection from collection agencies

Collection agencies have a thankless job, one that can leave them feeling frustrated and annoyed. Unfortunately, many collection agencies have pursued tactics that have stepped over the line and violated the rights of debtors. Such behavior necessitated the Fair Credit Debt Collection Practices Act, which protects people from harassment or abusive tactics in the collection of a debt.

As the usage of credit cards continues to rise, so do the regulations on the companies that issue them. Consumer protection laws have been enacted to safeguard consumers from unscrupulous financial institutions and overzealous collection agencies. As more and more people transition from currency to plastic, it appears that this type of legislation has only just begun.