Your Rights Under The Fair Credit Reporting Act
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If you get turned down for credit, insurance, or
employment because of your credit history you have the right to see what
is in your credit report. The company that turns you down is required to
give you the name of the consumer reporting agency that supplied the
information. Once you have the consumer reporting agency's contact
information- if you send them a written request for a copy of your credit
report within 60 days- you will be able to get a free copy of your credit
report.
Once you get your credit report, you should
check it for inaccurate information. To dispute any inaccuracies,
send a letter to both the credit bureau and the company that
provided the information to the credit bureau.
In your letter, state that you
dispute the item in question and provide copies of any supporting documentation
that you may have. Be sure to include all account and reference numbers in your
letter. It is a good idea to send your letters by certified mail and save copies
of everything for your records. Don't try to dispute over the phone because it
must be in writing to preserve your rights under the Fair Credit Reporting Act
(FCRA).
It used to be
that only the credit bureaus were held responsible under the FCRA for
correcting or deleting false credit information. Now, the companies that report
to the credit bureaus are held responsible, too. This is why it is best to send
your dispute letter to both the credit bureau and to the company that reported
the inaccurate information.
Once your dispute letter is received, the credit
bureau will investigate your claim by asking the company that reported the
information to review their records and compare them to the information
you provided. If the investigation results in a change to your credit
report, you will receive a copy of the amended credit report. The credit
bureau will correct or delete the disputed information and notify the
other credit bureaus within 30 days of receiving your letter if they find
in your favor.
If the credit bureau finds the dispute to be frivolous or if they side with the creditor and
decide the disputed item is accurate, you have the right to place a brief
statement in your credit report and you can ask to have the report with your
statement sent to anyone who has recently made an adverse decision against you
based on your credit.
Only inaccurate information can be removed from
your credit report. The only exceptions are if the information can not be
verified or if it is outdated. Negative credit entries can only stay on
your report for seven years, except bankruptcies which stay on for 10
years. For the purposes of employment for jobs paying over $75,000 per
year, negative credit information can be held against you for the rest of
your life.
An employer can not run a credit report on anyone
without providing a written statement disclosing that a credit report will
be run and without obtaining a signature from the job applicant consenting
to have their credit report ordered. Before an employer can deny the
applicant a position, they must give the applicant a copy of his/her
credit report and a summary of the consumer's rights under the
FCRA.
Your written
consent is required for the release of any reports that contain medical
information.
If you dispute
the accuracy of a bill with a creditor before it is reported to the bureaus, the
creditor must tell the bureaus that the account is disputed if they
decide to report it later.
Who Can See Your Credit Report?
If you apply
for credit, employment, or insurance, the company you are applying with can
order your credit report.
If you give
written consent, your credit report can be ordered
by an employer to make decisions for hiring, promoting,
firing, or reassigning.
If a court has
the jurisdiction, it can issue an order to pull up your credit
report.
| If you apply for a benefit or license
from a government agency that is required to look at your credit history,
your credit report will be ordered by them. |
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If there is a
legitimate business need for your credit history in connection with a
transaction involving you and initiated by you, your credit report can be
ordered.
State and
local agencies can run credit reports to determine child support payments or
changes in the amount of those payments.
A company you
have an account with can run your credit report to determine if you still
qualify for the account.
A company you
have an account with can order your credit report to use for collection
purposes.
If your credit
report is needed for anything kind of national security issue, it can be
ordered
Recourse You Have When Your FCRA Rights Are
Violated
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Under
the Fair Credit Reporting Act, you have the right to sue the credit bureau
and possibly even the creditor that reported the negative credit
information. If a credit report is ordered on you for a reason that is not
considered a "permissable purpose" under the FCRA, you can sue the person
who ordered it. An alternative to lawsuits would be to file a complaint
with your state's Attorney
general and the Federal Trade
Commission. |
