Fair Credit Reporting
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.
Q. How do I find
the CRA that has my report?
A. 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
800-685-1111
www.equifax.com
Experian
888-EXPERIAN (888-397-3742)
www.experian.com
Trans Union
800-916-8800
www.transunion.com
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.
Q. Do I have a right to know what's in my report?
A. 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.
Q. Is there a
charge for my report?
A. 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 free
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 $9 for a copy
of your report.
Q. What can I do
about inaccurate or incomplete information?
A. 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.
Q. What can I do
if the CRA or information provider won't correct the information I
dispute?
A. 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.
Q. Can my
employer get my report?
A. 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.
Q. Can creditors,
employers, or insurers get a report that contains medical information
about me?
A. Not without your approval.
Q. What should I
know about "investigative consumer reports"?
A. "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.
Q. How long can a
CRA report negative information?
A. 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.
Q. Can anyone get
a copy of my report?
A. No. Only people with a legitimate business need, as recognized
by the FCRA. For example, a company is allowed to get your report if
you apply for credit, insurance, employment, or to rent an apartment.
Q. How can I stop
a CRA from including me on lists for unsolicited credit and insurance
offers?
A. 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.
Q. Do I have the
right to sue for damages?
A. 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.
Q. Are there
other laws I should know about?
A. 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.
Q. Where should I
report violations of the law?
A. 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, DC 20580.
For More
Information
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
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FEDERAL TRADE COMMISSION |
FOR THE CONSUMER |
1-877-FTC-HELP |
www.ftc.gov |
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March 1999
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