Fair Debt Collection PracticesDebtor Responsibilities

Section § 1788.20

Explanation

This law says if you're asking for credit, like a loan, you shouldn't do it if you know you can't pay it back. Also, you shouldn't hide or lie about information that affects how lenders view your ability to repay.

In connection with any request or application for covered credit, no person shall:
(a)CA Civil Law Code § 1788.20(a) Request or apply for that credit at a time when that person knows there is no reasonable probability of that person’s being able, or that person then lacks the intention, to pay the obligation created thereby in accordance with the terms and conditions of the credit extension.
(b)CA Civil Law Code § 1788.20(b) Knowingly submit false or inaccurate information or willfully conceal adverse information bearing upon that person’s credit worthiness, credit standing, or credit capacity.
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Section § 1788.21

Explanation

This law says that if you have an existing or requested credit, you need to update your creditor about any changes in your name, address, or job. However, this requirement only kicks in if the creditor has clearly told you in writing that you need to do so.

(a)CA Civil Law Code § 1788.21(a) In connection with any covered credit existing or requested to be extended to a person, that person shall within a reasonable time notify the creditor or prospective creditor of any change in that person’s name, address, or employment.
(b)CA Civil Law Code § 1788.21(b) Each responsibility set forth in subdivision (a) shall apply only if and after the creditor clearly and conspicuously in writing discloses that responsibility to that person.
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Section § 1788.22

Explanation

This law section deals with responsibilities related to using a credit account. Firstly, if you know your account's credit privileges are cut off or paused, you shouldn’t try to make purchases with it. Secondly, if your credit card or account information is lost or stolen, you need to tell the lender as soon as you realize it, using any reasonable method like a call or letter, and help them figure out what happened. However, these duties apply only if the lender has clearly told you about them in writing.

(a)CA Civil Law Code § 1788.22(a) In connection with any covered credit extended to a person under an account:
(1)CA Civil Law Code § 1788.22(a)(1) No such person shall attempt to consummate any covered credit transaction thereunder knowing that credit privileges under the account have been terminated or suspended.
(2)CA Civil Law Code § 1788.22(a)(2) Each such person shall notify the creditor by telephone, telegraph, letter, or any other reasonable means that an unauthorized use of the account has occurred or may occur as the result of loss or theft of a credit card, or other instrument identifying the account, within a reasonable time after that person’s discovery thereof, and shall reasonably assist the creditor in determining the facts and circumstances relating to any unauthorized use of the account.
(b)CA Civil Law Code § 1788.22(b) Each responsibility set forth in subdivision (a) shall apply only if and after the creditor clearly and conspicuously in writing discloses that responsibility to that person.
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