Illinois Credit Law

Illinois has several sets of state and federal laws that directly impact residents' credit-related rights. The most prevalent law governing credit-related transactions in the state is the federal Fair Credit Reporting Act. But other laws, including the Fair Credit Billing Act, also protect consumers using credit cards and other types of loans, according to the Office of Attorney General.

Credit And Employment

In 2010, the Illinois General Assembly passed the Employee Credit Privacy Act. This state code severely limits non-government employers from using credit reports as a basis for hiring decisions, promotion decisions, discharge decisions and salary changes. Rare exceptions include truly financially sensitive positions. State and federal agencies can still use credit reports as part of any application process for financially sensitive positions.

Billing Rights

If you see an unauthorized charge on your credit card statement, just calling the company is not necessarily enough to protect your rights. Illinois residents with billing-related disputes should always write the company within 60 days after the company mailed the bill containing the error; this action ensures full protection under the Fair Credit Billing Act, according to the Illinois attorney general. Don't send the letter in the same envelope as a credit card account payment. Once the company receives a consumer's letter, they have up to 90 days to fix the problem or provide an explanation of why the charge is accurate.

Free Credit Reports

A 2005 amendment to the FCRA enabled Illinois residents to get at least one free copy of their credit reports each year. But state residents must request their reports directly from the agencies Equifax, Experian and TransUnion. People who are denied credit or become identity theft victims can request additional free credit reports, but should be prepared to prove their identities as well as information such as police report copies or denial letter dates.

Credit Report Problems

Only time will cure true credit problems resulting from late and unpaid accounts. Most credit problems reflect on credit reports for seven years from the date of the incident, but some issues like Chapter 7 bankruptcy and tax liens report for 10 years. An Illinois resident who notices credit reporting errors should contact the creditor as well as the credit reporting bureau involved. Under federal law, the business has up to 45 days to contact the consumer with an answer to the dispute. People who cannot get resolution should contact the Illinois attorney general or the Federal Trade Commission.