A person's credit report contains his past and present financial information, as well as personal information and public records. Any negative information on a credit report may go against the individual when applying for new credit, insurance or even certain jobs. The Fair Credit Reporting Act (FCRA) is a federal law that promotes accuracy of credit information collected and maintained by the national credit reporting agencies.
The Fair Credit Reporting Act
The Fair Credit Reporting Act recognizes the importance of the information listed in a credit report and protects consumers against credit reporting violations, including duplicate information. The Federal Trade Commission enforces the Fair Credit Reporting Act, which ensures that credit bureaus (Experian, TransUnion and Equifax) maintain accuracy, fairness and privacy. Consumers gained additional rights through several amendments to FCRA, including the Fair Debt Collection Practices Act (FDCPA) and Fair and Accurate Credit Transactions Act (FACTA).
Fair and Accurate Credit Transaction Act
FACTA allows consumers to receive a free credit report once a year from the three main credit reporting agencies. Consumers can obtain a credit report online or by requesting it by mail. FACTA contains provisions that address the accuracy of the information in credit reports by allowing consumers to monitor information in their credit files and address any inaccuracies immediately. The Federal Trade Commission (FTC) enforces FACTA and monitors the credit reporting agencies to ensure they follow the laws. The FTC encourages consumers to report any violations to it.
Disputing Inaccurate Information
Under the Fair Credit Reporting Act, agencies and companies that provide and report inaccurate information are responsible for correcting it. If you see duplicate information, file a dispute. If disputing by mail, include a copy of your report and clearly mark the incorrect information. You may also want to write a letter stating why you think the information is inaccurate. Include copies of any supporting documents. You may file a dispute on the credit bureau's website after you receive a copy of your report. Credit reporting companies must investigate and respond within 30 days.
Consumer's Rights Following the Dispute
A credit reporting agency must respond in writing and inform you about the results of the investigation. It must correct any information found inaccurate and inform the other national credit reporting agencies so they also correct information in your file. The agency may not put deleted or changed information back into the report unless the information provider certifies that it is correct. Agencies must also provide you with a free credit report to ensure errors were corrected and send a copy to any company that has requested your file in the past six months, as well as to any company that requested the information for employment purposes within the last two years.
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