Errors on credit reports are very common and can happen for many reasons. The following are three reasons to check your credit report for errors:
• People can make mistakes with data entry.
• Lenders may fail to report accounts or reparations to accounts.
• Identity theft is a real threat, and one of the first places it may show up is on your credit report.
All these issues can cost you in poor credit, fees, increased interest rates, and lost opportunities for employments and living space.
The U.S. government recognizes the power lenders and credit bureaus possess, and in response to this realization the government has established laws guiding the credit bureaus and the reporting by lenders. These guidelines are delineated in the Fair and Accurate Credit Reporting Act, originally instituted as the Fair Credit Reporting Act (it has been amended and upgraded as time has passed to provide even more protection for consumers.) This piece of legislation helps you in the following ways:
Free Credit Reports Available Every Year
All three credit bureaus (Experian, Equifax and TransUnion) are required to give you a free credit report every year. (You do have to request this yourself, though.)
You are Entitled to a Second Free Credit Report if:
• You were refused credit within the last 60 days when you applied for new credit.
• You are currently unemployed and are seeking employment.
• The government is supplying you with welfare assistance.
• You are an identity theft victim and have filed a police report.
Providing a Means for You to Seek Recourse if Your Credit is not Accurately Reported
• The Fact Act details how you can dispute errors on your credit report and ensures the credit bureaus investigate your dispute in a timely manner.
• If the credit bureaus do not respond within thirty days to your dispute, they are held responsible and must remove the disputed information.
• If any inaccurate reporting is discovered, it is changed quickly.
• Creditors must let you know if any new negative information has been reported so you have a chance to dispute it.
• You can sue the credit bureau for inaccurate information reported that adversely affected your search for credit.
Military Personnel Can Request Protective Precautions
Alerts can be set on your credit report when you serve outside the country.
Consumers Can Limit Access to Information on Credit Reports
The FACT Act protects you because now employers or prospective creditors must request and receive approval from you if he or she wants to view your credit report. If they do not receive your consent, they do not get to see it. Prior to the new law in 2003, credit reports were viewed by a much wider audience regardless of consumer knowledge or approval.
The Police are Now Available to Assist You if You Believe You Have Been the Victim of Identity Theft
• You can file a report at the police station and the police will investigate the crime.
• Your report is protected during the investigation.
If you want to read the law itself, you can research the details of the FACT Act at:
www.ftc.gov
http://www.ftc.gov/os/statutes/fcrajump.shtm
