The U.
S.
government instituted a law called the Fair Credit Reporting Act (commonly referred to as the FCRA).
This law regulates what can be reported on our credit reports, who can see our credit history, and much, much more.
Here are the main consumer rights that the Fair Credit Reporting Act offers: 1) The law gives consumers the right to see what is included in their credit report.
Previously, the credit reporting agencies were sharing consumer credit history with financial institutions, and consumers were by and large left out of the loop.
The law creates more transparency into what is being said about us as consumers, by allowing us to receive credit reports.
2) The FCRA is also very clear about who can access our reports and who can't.
Not just anyone is allowed to do a credit check on you.
The FCRA mandates that an entity must have a clear permissible purpose before having the right to pull your credit history.
Here is a list of potential entities who may be able to pull your credit report under certain circumstances: a.
Lenders: Whenever you apply for a loan, you give the potential lender or credit card company the ability to pull you credit report.
b.
Utility companies: Utility providers and cell phone companies may be able to run a credit check on you when you apply for new service.
Because they are extending you a monthly service, they want to make sure you have a positive history of paying back your debts.
c.
Employers, landlords, and insurance companies all may be able to check your credit if you apply for a job, an apartment, or a new insurance policy.
d.
A court of law can also issue a subpoena for your credit history if relevant to a lawsuit.
Also, a child support agency has the right to pull a parent's credit report to establish ability to make child support payments.
e.
Remember that you have the right to review your own credit report at any time.
There is never a penalty to your credit by pulling your own report.
3) The FCRA also entitles us to accurate credit reports.
This means that if there are errors or fraud on your report, the credit bureaus and your creditors have a legal responsibility to remove the mistakes once you alert them to them.
You are legally entitled to report inaccurate information on your report and receive a response from the bureaus (within 30-45 days) addressing your concern.
An amendment to the FCRA is the Fair and Accurate Credit Transactions Act (also called FACTA or the FACT Act).
The FACT Act specifically gives consumers the right to a free credit report from each of the three credit bureaus (TransUnion, Equifax, and Experian) each year.
S.
government instituted a law called the Fair Credit Reporting Act (commonly referred to as the FCRA).
This law regulates what can be reported on our credit reports, who can see our credit history, and much, much more.
Here are the main consumer rights that the Fair Credit Reporting Act offers: 1) The law gives consumers the right to see what is included in their credit report.
Previously, the credit reporting agencies were sharing consumer credit history with financial institutions, and consumers were by and large left out of the loop.
The law creates more transparency into what is being said about us as consumers, by allowing us to receive credit reports.
2) The FCRA is also very clear about who can access our reports and who can't.
Not just anyone is allowed to do a credit check on you.
The FCRA mandates that an entity must have a clear permissible purpose before having the right to pull your credit history.
Here is a list of potential entities who may be able to pull your credit report under certain circumstances: a.
Lenders: Whenever you apply for a loan, you give the potential lender or credit card company the ability to pull you credit report.
b.
Utility companies: Utility providers and cell phone companies may be able to run a credit check on you when you apply for new service.
Because they are extending you a monthly service, they want to make sure you have a positive history of paying back your debts.
c.
Employers, landlords, and insurance companies all may be able to check your credit if you apply for a job, an apartment, or a new insurance policy.
d.
A court of law can also issue a subpoena for your credit history if relevant to a lawsuit.
Also, a child support agency has the right to pull a parent's credit report to establish ability to make child support payments.
e.
Remember that you have the right to review your own credit report at any time.
There is never a penalty to your credit by pulling your own report.
3) The FCRA also entitles us to accurate credit reports.
This means that if there are errors or fraud on your report, the credit bureaus and your creditors have a legal responsibility to remove the mistakes once you alert them to them.
You are legally entitled to report inaccurate information on your report and receive a response from the bureaus (within 30-45 days) addressing your concern.
An amendment to the FCRA is the Fair and Accurate Credit Transactions Act (also called FACTA or the FACT Act).
The FACT Act specifically gives consumers the right to a free credit report from each of the three credit bureaus (TransUnion, Equifax, and Experian) each year.