Consumer credit card providers continually face market changes to which they must adjust. Interest rates, government oversight and consumer confidence are all areas that need to be followed closely so that you can remain competitive with your own consumer credit card services.

Look to diversify your credit business with consumer credit counseling and other credit products so that when one area goes flat, you can stay afloat. Follow trends affecting consumer credit information from a variety of sources because the consumer credit news and trends are reported from a wide range of perspectives.

1. Keep up with consumer credit reporting news.

2. Subscribe to reliable publications for information on consumer credit.

3. Tap into your consumer credit info resources in your trade association.

Action Steps
The best contacts and resources to help you get it done

Stay ahead of the consumer credit debt consolidation trends

If you stay on top of the news instead of just reacting, you can be better positioned to take advantage of emerging markets for consumer credit services. Keep track of the general political and financial environments to help gauge the next big trend that could set you apart or allow you to set up a credit counseling service that is really needed.

I recommend: Newser is a good source for finding regulatory news that could affect your daily operations. Keep up with daily news and trend setting issues by checking in with NewsDaily. FiLife, a service of the Wall Street Journal, covers consumer credit news and trends, while Bankrate.com watches changing interest rates on consumer credit.

Find the best sources of news that cover consumer credit card providers

When you find a good source that gives you the news that provides you with current rates and market information as well as information about competitors, stick with it and check it every day. Add other resources for consumer credit card providers, such as news sources that will send you email alerts when new regulations are announced or a new market opens up.

I recommend: You can sign up for daily email reports and read in-depth pieces that address consumer credit issues at The Big Money. Portfolio.com is a good source for reading about industry leaders and the kinds of news they are making, as well as trend articles that can help you make better business decisions.

Join groups to network with other consumer credit counselors

Trade groups are great places to hear about the latest consumer credit even before they hit the press. Build relationships that will lead to referrals for your credit counseling business and find experts who can keep you updated with industry trends.

I recommend: The National Foundation for Credit Counseling keeps members apprised of the latest trends and how they are affecting your customers as well as providing information that can help you better serve your clients. Make important contacts and keep up with industry trends through participation in the Consumer Credit Industry Association.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  As part of your news gathering effort, check the websites of competing consumer credit management services to find out what kinds of services they are offering and which contracts they're landing.

Success in business means utilizing all available tools. Consumer credit card providers are quick to offer plastic to anyone old enough to buy a beer but the overuse of credit cards leads to debt-burdened customers and lawmakers who pass legislation to curb the practice.

Before you're ready to offer a consumer credit, you need to know the laws that regulate the practice to keep yourself on the right side of the law. Many federal laws deal with consumer credit management. By offering revolving credit accounts to regular customers, you build on service and loyalty. However, the terms used when establishing an account are restricted to protect the consumer from unfair credit practices. Arguably, the most important laws deal with:

1. The way you share consumer credit information with other creditors.
2. The way you establish your billing for credit customers.
3. The methods you use to collect a debt.
4. The equality factor you use in determining to whom you extend credit.

Action Steps
The best contacts and resources to help you get it done

Know the consumer's rights to financial information

Make it a priority to understand the Truth in Lending Act, which enforces a consumer's right to certain details regarding their personal financial information on consumer credit with your company.

I recommend: Study a Truth in Lending disclosure form provided by Indiana's Department of Financial Institutions. Be aware of Regulation Z, an extensive set of qualifications further defining the Act. You are required to disclose your financing terms up-front.

Establish fair billing with all your customers

The Fair Credit Billing Act deals with your right to collect payment while protecting the rights of the consumer.

I recommend: Follow fair credit billing practices by responding to a billing inquiry within 30 days and suspending collection and fees on the account, as set forth in the Fair Credit Billing Act. In addition, you are obliged to notify customers about their rights by mail periodically.

Get your money, but follow the law

Collecting a debt owed isn't a cut and dried matter. The law forbids you to use practices deemed abusive to consumers. In addition, consumer credit counseling agencies may contact you on behalf of a debtor to negotiate an amicable settlement. This may involve accepting less than you are owed in exchange for removing negative information from the consumer's credit reports and wiping the debt from your books.

I recommend: Read the Fair Debt Collection Practices Act (FDCPA) to understand what is harassing, abusive or misleading when collecting a debt. Consumer credit counselors have the right to contact you in order to settle a consumer's debt. Some charge a fee for this service.

Use caution when denying credit to anyone

Consumer credit card services and other businesses may not deny credit to an applicant based upon race or other discriminatory factors deemed unlawful. However, you may refuse to grant credit on legitimate credit rating standards or financial records.

I recommend: Adhere strictly to the regulations set forth in the Equal Credit Opportunity Act (ECOA) when considering applicants for credit. If a disgruntled consumer sues you for discrimination, hire a good business defense attorney with experience in successfully defending clients against fraudulent ECOA claims.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Stay abreast of constant changes in consumer credit law to get the most benefit from extending credit to your customers.
• •  Treat all credit applicants with respect and in a fair manner. By setting specific standards when approving credit, you can justify your decision later, if need be. Keep all rejected credit applications for one year.
• •  Encouraging customers to spend more than they can financially afford can lead to a default on their payment. Set reasonable credit limits.

There is a strong need for businesses to access information on consumer credit management. Many institutions have classes that help build a person’s financial education on both a personal and professional level.

Many consumers find themselves in debt and unable to make the minimum payments on their credit cards. With consumer credit counseling, you can get the tools needed to help customers make informed choices on how to manage their money.

1. Find institutions that train on consumer credit issues. These online schools have a team of consumer credit counselors that can help make financially viable decisions.

2. Get training for consumer credit counseling. You can find manuals and handbooks that can assist with understanding consumer credit card providers and consumer credit card services.

3. Work with a consumer credit counseling service for the most comprehensive consumer credit info. A service can provide you or your company with any additional training that you need.

Action Steps
The best contacts and resources to help you get it done

Expand your consumer credit education

If you are in a business where you provide consumer credit information or even if you just want to learn better management techniques for your own company, you can attend an online school that gives you lessons on consumer credit services. Some companies even use a financial education facility to provide their employees with lessons on consumer credit.

I recommend: You can contact the Centers for Financial Education about setting up or attending a program that discussed consumer credit info. You can also view the event calendar to see when the consumer credit counseling service’s program is coming to your area. Consumer Credit Counseling Service of Rochester has a financial education program as well that not only discusses consumer credit cards, but other ways to manage your money.

Receive consumer credit training

You can get online training regarding consumer credit management by not only viewing handbooks on the topic, but also browsing consumer credit card providers. Provider websites can give you information on their APRs, payment plans, financial fees and more.

I recommend: Consumer Education Services has a slew of consumer credit educational programs and resources that you can access. They have online training manuals, calculators and other useful tools for those interested in learning more about consumer credit. CreditCards.com has links to consumer credit card providers as well as helpful articles that discuss different credit and debt management topics.

Contact a consumer credit counseling organization

Consumer credit counselors are professionals that know the ins and outs of consumer credit and how to advise on making informed financial decisions. They can provide both you and your employees with information on how to help consumers pay for their purchases in a safe manner.

I recommend: Credit.org is a non-profit organization that strives to give the most accurate consumer credit and debt management information possible to both consumers and businesses that are interested in employee training. You can speak to representatives by phone or request an appointment. A similar organization, Advantage Credit Counseling Service, provides free non-profit counseling services online or through a toll-free phone number.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many consumer credit counseling programs discuss more than just consumer credit cards. Training may include information on debt repayment options, bankruptcy and more.

Consumer credit is something many businesses have to handle on a daily basis. A business should understand the Fair Credit Reporting Act and the Equal Credit Opportunity Act. The business may need to obtain a copy of a credit report or perform an electronic fund transfer on behalf of the business owner. A consumer's credit is accessible to a business through credit reporting agencies. It is critical for a business owner to fully understand consumer credit prior to providing or using it.

Action Steps
The best contacts and resources to help you get it done

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act is a federal law outlining the rights of the consumer. The law requires businesses to only report fairly on consumer credit reports. It also ensures the privacy rights of the individual.

I recommend: The Federal Trade Commission provides a detailed report of the Fair Credit Reporting Act.

Equal Credit Opportunity Act (ECOA)

The Equal Credit Opportunity Act is another federal law affecting business owners. This law prohibits a business from discriminating against applicants for credit based on sex, marital status, religion, age or race.

I recommend: The United States Department of Justice provides more information on the Equal Credit Opportunity Act.

Electronic fund transfer

An electronic fund transfer is the process of moving money directly from a consumer's account to a business. The Electronic Funds Transfer Act is a federal law governing the legal requirements of businesses in handling these types of transfers.

I recommend: The Federal Reserve provides a detailed example and description of an electronic fund transfer and more information on the Electronic Funds Transfer Act.

Credit report

The best way to manage consumer credit is to use a credit report. This report details the way a consumer uses credit, including secured and unsecured forms. It is often the tool used to determine if an individual is eligible for a loan. Businesses may access this report with written permission.

I recommend: The Federal Reserve Bank of San Francisco provides more details on the credit report.

Credit reporting agencies

Credit reporting agencies are the companies that gather information for credit reports. There are three major agencies in the United States: Equifax, Experian and TransUnion. A business may contact one of these agencies to obtain a credit report on a potential borrower.

I recommend: The Federal Deposit Insurance Corporation provides additional information about credit reporting agencies.

Credit score, FICO score, credit rating

A credit score is a numerical representation of the information on a credit report. The higher the score is, the better the individual's past credit performance. The score is comprised of payment history, the amounts owed on current loans, the length of credit history, the number of new credit accounts and the types of credit used.

I recommend: MyFICO offers a detailed explanation of the credit score.