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Fair Credit Reporting - Questions &
Answers
Introduction
If you've ever applied for a
charge account, a personal loan, insurance, or
a job, there's a file about you. This file contains
information on where you work and live, how you
pay your bills, and whether you've been sued,
arrested, or filed for bankruptcy.
Companies that gather and sell
this information are called Consumer Reporting
Agencies (CRAs). The most common type of CRA is
the credit bureau. The information CRAs sell about
you to creditors, employers, insurers, and other
businesses is called a consumer report.
The Fair Credit Reporting Act
(FCRA), enforced by the Federal Trade Commission,
is designed to promote accuracy and ensure the
privacy of the information used in consumer reports.
Recent amendments to the Act expand your rights
and place additional requirements on CRAs. Businesses
that supply information about you to CRAs and
those that use consumer reports also have new
responsibilities under the law.
Here are some questions consumers
commonly ask about consumer reports and CRAs --
and the answers. Note that you may have additional
rights under state laws. Contact your state Attorney
General or local consumer protection agency for
more information. For additional information or
to schedule a low cost consultation to discuss your
particular circumstances, please call us at 214-265-0808.
*This information has been adapted
from materials published by the Federal Trade
Commission.
How do I find the Credit
Reporting Agency that has my report?
Contact the CRAs listed in the
Yellow Pages under "credit" or "credit
rating and reporting." Because more than
one CRA may have a file on you, call each until
you locate all the agencies maintaining your file.
The three major national credit bureaus are:
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
Experian (formerly TRW)
P.O. Box 949
Allen, TX 75013
(888) EXPERIAN (397-3742)
Trans Union
760 West Sproul Road
P.O. Box 390
Springfield, PA 19064-0390
(800) 916-8800
In addition, anyone who takes
action against you in response to a report supplied
by a CRA -- such as denying your application for
credit, insurance, or employment -- must give
you the name, address, and telephone number of
the CRA that provided the report.
Do I have a right to
know what's in my report?
Yes, if you ask for it. The CRA
must tell you everything in your report, including
medical information, and in most cases, the sources
of the information. The CRA also must give you
a list of everyone who has requested your report
within the past year -- two years for employment
related requests.
Is there a charge for
my report?
Sometimes. There's no charge
if a company takes adverse action against you,
such as denying your application for credit, insurance
or employment, and you request your report within
60 days of receiving the notice of the action.
The notice will give you the name, address, and
phone number of the CRA. In addition, you're entitled
to one low cost report a year (1) you're unemployed
and plan to look for a job within 60 days, (2)
you're on welfare, or (3) your report is inaccurate
because of fraud. Otherwise, a CRA may charge
you up to $8 for a copy of your report.
What can I do about inaccurate
or incomplete information?
Under the new law, both the CRA
and the information provider have responsibilities
for correcting inaccurate or incomplete information
in your report. To protect all your rights under
this law, contact both the CRA and the information
provider.
First, tell the CRA in writing
what information you believe is inaccurate. CRAs
must reinvestigate the items in question - usually
within 30 days -- unless they consider your dispute
frivolous. They also must forward all relevant
data you provide about the dispute to the information
provider. After the information provider receives
notice of a dispute from the CRA, it must investigate,
review all relevant information provided by the
CRA, and report the results to the CRA. If the
information provider finds the disputed information
to be inaccurate, it must notify all nationwide
CRAs so that they can correct this information
in your file.
When the reinvestigation is complete,
the CRA must give you the written results and
a free copy of your report if the dispute results
in a change. If an item is changed or removed,
the CRA cannot put the disputed information back
in your file unless the information provider verifies
its accuracy and completeness, and the CRA gives
you a written notice that includes the name, address,
and phone number of the provider.
Second, tell the creditor or
other information provider in writing that you
dispute an item. Many providers specify an address
for disputes. If the provider then reports the
item to any CRA, it must include a notice of your
dispute. In addition, if you are correct -- that
is, if the information is inaccurate -- the information
provider may not use it again.
What can I do if the
CRA or information provider won't correct the
information I dispute?
A reinvestigation may not resolve
your dispute with the CRA. If that's the case,
ask the CRA to include your statement of the dispute
in your file and in future reports. If you request,
the CRA also will provide your statement to anyone
who received a copy of the old report in the recent
past. There usually is a fee for this service.
If you tell the information
provider that you dispute an item, a notice of
your dispute must be included anytime the information
provider reports the item to a CRA.
Can my employer get my
report?
Only if you say it's okay. A
CRA may not supply information about you to your
employer, or to a prospective employer, without
your consent.
Can creditors, employers,
or insurers get a report that contains medical
information about me?
Not without your approval.
What should I know about
"investigative consumer reports"?
"Investigative consumer
reports" are detailed reports that involve
interviews with your neighbors or acquaintances
about your lifestyle, character, and reputation.
They may be used in connection with insurance
and employment applications. You'll be notified
in writing when a company orders such a report.
The notice will explain your right to request
certain information about the report from the
company you applied to. If your application is
rejected, you may get additional information from
the CRA. However, the CRA does not have to reveal
the sources of the information.
How long can a CRA report
negative information?
Seven years. There are certain exceptions:
- Information about criminal convictions may
be reported without any time limitation.
- Bankruptcy information may be reported for
10 years.
Information reported in response to an application
for a job with a salary of more than $75,000
has no time limit.
- Information reported because of an application
for more than $150,000 worth of credit or life
insurance has no time limit.
- Information about a lawsuit or an unpaid judgment
against you can be reported for seven years
or until the statute of limitations runs out,
whichever is longer.
Can anyone get a copy
of my report?
No. Only people with a legitimate
business need, as recognized by the Fair Credit
Reporting Act. For example, a company is allowed
to get your report if you apply for credit, insurance,
employment, or to rent an apartment.
How can I stop a CRA
from including me on lists for unsolicited credit
and insurance offers?
Creditors and insurers may use
CRA file information as a basis for sending you
unsolicited offers. These offers must include
a toll-free number for you to call if you want
to remove your name and address from lists for
two years; completing a form that the CRA provides
for this purpose will keep your name off the lists
permanently.
Do I have the right to
sue for damages?
You may sue a CRA, a user or
-- in some cases -- a provider of CRA data, in
state or federal court for most violations of
the FCRA. If you win, the defendant will have
to pay damages and reimburse you for attorney
fees to the extent ordered by the court.
Are there other laws
I should know about?
Yes. If your credit application
was denied, the Equal Credit Opportunity Act requires
creditors to specify why -- if you ask. For example,
the creditor must tell you whether you were denied
because you have "no credit file" with
a CRA or because the CRA says you have "delinquent
obligations." The ECOA also requires creditors
to consider additional information you might supply
about your credit history. You may want to find
out why the creditor denied your application before
you contact the CRA.
Where should I report
violations of the law?
An attorney experienced in credit
and consumer issues can advise you with respect
to your rights and remedies if your information
in your credit report is inaccurate or if your
creditors have reported information inaccurately.
Although the FTC can't act as your lawyer in private
disputes, information about your experiences and
concerns is vital to the enforcement of the Fair
Credit Reporting Act. Send your questions or complaints
to: Consumer Response Center -- FCRA, Federal
Trade Commission, Washington, D.C. 20580.
How can I get more information?
The attorneys at The Armstrong
Law Firm would be happy to discuss your particular
concerns with you. Please call us (214)265-0808
or e-mail CArmstrong@ArmstrongAttorneys.com
to schedule a low cost consultation.
In addition, you can file a complaint with the
FTC by contacting the Consumer Response Center
by phone: 202-FTC-HELP (382-4357); TDD: 202-326-2502;
by mail: Consumer Response Center, Federal Trade
Commission, 600 Pennsylvania Ave, NW, Washington,
DC 20580, or through the Commission’s web
site: www.ftc.gov. Although the Commission cannot
resolve individual problems for consumers, it
can act against a company if it sees a pattern
of possible law violations.
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