Colorado Consumer Credit Reporting Act

The Colorado Consumer Credit Reporting Act was issued by the state to protect consumer's credit information by making sure it remains accurate and private. Only certain consumer information may be listed and shared in a credit report. A consumer has a right to access his credit reports for free every 12 months. He may also request what is known as a security freeze. This allows the consumer to have a block placed on his credit file. A security freeze is useful for consumers who have been victims of identity theft or credit fraud.

Prohibitions

The Colorado Consumer Credit Reporting Act prohibits the collection and furnishing of certain consumer information. This includes any Chapter 11 bankruptcy case that date more than 10 years from the date of the credit report to the date of the order of relief or adjudication. Civil suits, judgments and records that date more than seven years from the report date are prohibited. Paid tax liens, accounts placed for collection, criminal records and other adverse information dating more than seven years from the report date are also banned. Medical information is disallowed and consumer credit agencies may not furnish the names of persons requesting credit information or the number of credit report inquiries if they predate the credit report by more than one year.

Access

So that consumers may review the credit information reported by the three major credit bureaus (Experian, Equifax and Trans Union), the Colorado Consumer Credit Act allows for a free consumer credit report every 12 months. This law is reinforced by the federal Fair and Accurate Transactions Act (FACTA), which states the same thing. Consumers may contact the three major credit bureaus via telephone, mail or Internet and ask for a copy of their credit report. Consumers may contact all three credit bureaus at once to receive each company's report or they can space their requests out. A consumer has a right to dispute any incomplete or inaccurate information in the credit report by contacting the three credit bureaus in writing. The credit bureau has 30 days from the date it receives your notification to conduct an investigation.

Time Frame

The Colorado Consumer Credit Reporting Act was issued prior to the federal Fair and Accurate Transaction Act (FACTA) of 2003. As such, the federal Fair Credit Reporting Act (FCRA) and FACTA cite the existence of Colorado consumer credit laws that govern how credit bureaus and credit agencies may disclose credit information.

Security

To prevent identity theft and credit fraud, the Colorado Credit Reporting Act and the federal Fair Credit Reporting Act (FCRA) allow a consumer to place a "security freeze" on her credit file. A security freeze allows a consumer to temporarily or permanently place a freeze or block on her credit file. This prevents a creditor from being able to retrieve consumer credit information. It is useful in instances in which a consumer has been a victim of credit fraud, as a creditor will not be able to open a new credit account. Security freezes must be addressed to the major credit bureaus (Experian, Equifax and Trans Union) and may be made via letter, phone or Internet. Once the credit bureaus have received the request, they must place a freeze on the credit file within five business days. Consumers who wish to remove the freeze must recontact the credit bureaus. No fee is charged to place an initial security freeze or for victims of credit fraud (provided a police report can be furnished to the credit bureau). To temporarily lift or permanently remove a credit freeze or for subsequent freeze requests (second request and thereafter), a $10 charge may apply.

Penalties

Any person who knowingly violates the provisions of the Colorado Credit Reporting Act or the federal Fair Credit Reporting Act shall be liable for three times the amount in actual damages or $1,000 per violation and attorney's fees and costs, whichever is greater. If the violation relates to information reported in a consumer's credit file or a credit file's status (frozen or unfrozen), a penalty of $1,000 per day will be assessed if the violation was not corrected 10 days after any entry of judgment for damages.