Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for the credit is increased either wholly or partly because of information obtained from a person other than a credit reporting agency bearing on the consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, certain requirements must be met. The user of such information, when the adverse action is communicated to the consumer, must clearly and accurately disclose the consumer's right to make a written request for disclosure of the information. If such a request is made and is received within 60 days after the consumer learned of the adverse action, the user, within a reasonable period of time, must disclose to the consumer the nature of the information.
Guam Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency Introduction: A "Guam Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency" is an official document used by creditors to inform consumers in Guam about an upcoming change in their credit charges. This notice is typically issued when the creditor receives information about the consumer's creditworthiness from sources other than a consumer reporting agency, prompting a potential increase in interest rates or other charges. Here's a detailed description of the notice, its purpose, and various types involved. Purpose: The primary purpose of the Guam Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency is to provide transparency and ensure that consumers are aware of any changes to their credit terms. It serves as a legal requirement for creditors to notify consumers in advance about the potential increase in charges, giving them an opportunity to review and respond to the proposed changes. Content of the Notice: 1. Creditor Information: The notice begins with the creditor's name, contact information, and address. This section identifies the organization responsible for the notice and provides consumers with the means to seek further information or clarification. 2. Consumer Information: Following the creditor's information, the notice includes the consumer's name, address, and relevant account details. This ensures that the recipient easily identifies the notice's relevance and connects it to their specific credit account. 3. Effective Date: The notice clearly states the date from which the proposed increase in charges will take effect. This allows the recipient to anticipate when the change will occur and make any necessary adjustments to their financial planning. 4. Reason for the Increase: Next, the notice explains the reason for the proposed increase in charges. It mentions that the information received about the consumer's creditworthiness from a source other than a consumer reporting agency has prompted the need for the adjustment. 5. Details of the Increase: The notice provides a comprehensive breakdown of the specific charges that will be affected by the increase. This includes interest rates, late payment fees, annual fees, or any other charge directly associated with the credit account. Types of Guam Notices of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency: 1. Interest Rate Increase Notice: This type of notice informs consumers that their interest rates on existing credit accounts will be increased based on the information obtained from a source other than a consumer reporting agency. 2. Fee Increase Notice: A fee increase notice is issued when the creditor decides to raise various charges associated with the credit account. This may include annual fees, late payment fees, or even balance transfer fees based on the information received about the consumer's creditworthiness. 3. Penalty APR Notice: In some cases, creditors may issue a notice to inform consumers about a penalty APR (Annual Percentage Rate) increase due to adverse credit information obtained from a non-consumer reporting agency source. This notice highlights the potential higher interest rate that will be applied if the consumer fails to meet certain credit obligations. Conclusion: The Guam Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency plays a crucial role in providing consumers with advanced notice of potential changes to their credit charges. It ensures transparency and enables consumers to review and respond to the proposed increases. Various types of notices may be sent, such as interest rate increase notices, fee increase notices, or penalty APR notices, depending on the specific changes applicable to the consumer's credit account.
