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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. |
