Federal and state laws protect North Carolina residents from identity theft and inaccurate credit reporting. Because credit reports play a role in whether consumers get loans, credit cards, apartments and even some types of jobs, it is very important to keep an eye on the accuracy of the information reflected on these types of documents.
Security Freeze
North Carolina state law 75-63 enables citizens to demand a "security freeze" on their credit reports. As of 2011, it takes up to three days for the security measure to go into effect. Once the freeze is in place, a third party cannot view the person's credit report without direct permission from that person. A security freeze also bars creditors from granting new accounts without verifying the applicant's identity. A North Carolina resident can request removal of the security freeze at any time either for temporary reasons such as applying for a mortgage or permanently. Unless you are the victim of identity theft or over the age of 62, you may be required to pay $3 to place a security freeze on your report, notes the credit reporting agency Experian.
Free Annual Credit Reports
North Carolina residents are entitled to one free copy of their credit reports each year, according to the Federal Trade Commission. Federal officials granted this right to North Carolinians in 2005. Residents can request their reports from one or more of the major credit bureaus Equifax, Experian and TransUnion. However, identity verification through a series of online multiple choice questions or mailing a copy of a government-issued photo identification card may be required. North Carolina residents can get more free credit reports in a year only if they are denied credit or a job. Otherwise, additional credit reports are available for a nominal fee.
Credit Reporting Time Frame
The Fair Credit Reporting Act governs the length of credit reporting in North Carolina. Typically, negative information such as late credit card payments, unpaid medical collection accounts and Chapter 13 bankruptcies reflects on credit reports for seven years from the date of the incident. Some types of negative credit information such as Chapter 7 bankruptcy and tax liens can legally report for 10 years. A prompt payment history on closed accounts reports for 10 years from the date of closure; on-time payments on open credit accounts report indefinitely.
Disputing Errors
If you live in North Carolina and find errors on your credit report, the Fair Credit Reporting Act assures you the right to demand a prompt investigation. If a credit reporting agency keeps provably inaccurate information on your files, you can sue them for monetary damages. In some cases, you may also be able to sue the creditor reporting the inaccurate information if they do not help resolve the situation in a timely manner.
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