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.
Keywords: Michigan, Notice of Increase in charge of Credit, Information Received From Person Other Than Consumer Reporting Agency, types. A Michigan Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency is a legal document that informs consumers about changes in their credit charges based on information obtained from sources other than consumer reporting agencies. This notice is significant as it provides transparency and complies with the regulations specified by Michigan state laws. There are two main types of Michigan Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency: 1. Initial Notice: This type of notice is sent to the consumer when the creditor intends to increase the charges on their credit based on information obtained from a source other than a consumer reporting agency. The notice outlines the proposed increased charges and reasons for the change. 2. Final Notice: If the consumer does not dispute the initial notice within a specific timeframe, the creditor will proceed with the increase in charges. A final notice is then sent, which confirms the implementation of the change and highlights the revised credit charges that will be applicable. When drafting either type of notice, it is crucial to include the following information: — Creditor's Information: The name, address, and contact details of the creditor need to be clearly mentioned. This helps consumers to identify the source of the notice and establish communication if necessary. — Consumer's Information: The notice should also include the consumer's name, address, and any other relevant identifying details to ensure that it reaches the correct individual. — Effective Date: Specify the date on which the increased charges will take effect. This allows consumers to plan accordingly and make informed financial decisions. — Explanation of Change: Clearly articulate the reasons behind the increase in credit charges based on information received from a person other than a consumer reporting agency. This could include factors such as changes in credit risk assessment or personal financial information. — Dispute Instructions: Provide instructions on how consumers can dispute the increase in charges if they believe it to be incorrect or unfair. Include appropriate contact details, such as a dedicated helpline or email address, to facilitate dispute resolution. — Legal Compliance: Ensure that the notice complies with all relevant Michigan state laws and regulations regarding the disclosure of credit information and consumer rights. In conclusion, a Michigan Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency is an essential document that should be professionally prepared and clearly communicate changes in credit charges to consumers. By including the aforementioned information, creditors can ensure transparency, legal compliance, and an opportunity for consumers to dispute any discrepancies.
