Adverse Reporting By Credit Services – Consequences And Fixes
A poor credit report can prevent you from obtaining credit. If you need help getting credit, it might be because a credit agency has issued a negative statement on you. You might receive a copy of your report; if it contains false information, you should get it corrected.
The Fair Credit Reporting Act
The Fair Credit Reporting Act can be found in 15 U.S.C. § 1681 and protects financial and credit information from being collected by private reporting bureaus. These include credit bureaus, medical information companies, and tenant screening services.
The Act also requires that the credit bureaus make sure that the information they collect about you is accurate and that they provide you with a free copy of your report upon request.
Specific purpose required to obtain credit information
According to Federal Trade Commission, consumer credit information in a consumer’s report can only be provided to third parties with an accepted purpose specified in the Act.
Seeing your credit report
If you are denied credit, you are entitled to a free copy of the consumer credit report that formed the basis for the denial. The creditor must tell you the name of the credit reporting agency that prepared the information for you. You must request a copy of your credit report from the agency within sixty days of the denial.
The three major credit reporting agencies are:
When the creditor tells you the reporting agency’s name that furnished the report, call them to find their address. Then write a letter to the agency requesting a copy of your report.
Information in your credit report
Your credit report will generally contain information about your credit history during the last seven years. It will show the following:
- To whom you have borrowed money from
- The amount of the debt
- Whether or not you made the promised payment on time and in full
- The identity of any creditor who has requested information about you
If you file for bankruptcy, the information remains on your credit report for ten years.
What If My Credit Report Needs To Be Corrected?
You have a legal right to challenge the report’s accuracy
Write a detailed letter to the credit reporting agency explaining that some of the information in the report needs to be completed or updated. The agency must investigate your claim – without charge – within thirty days. The agency must delete any information that is inaccurate or whose accuracy cannot be verified.
If the credit reporting agency’s investigation does not resolve the dispute, you have the legal right to send the agency a brief statement (generally 100 words or fewer) explaining your position. Your statement will become a part of your credit report and will be disclosed to creditors upon lawful request.
Taking protective measures
Even if you have not been denied credit, periodically checking your credit report for accuracy is a good idea. They often contain mistakes, and when you want to get a loan, you may need more time to correct them. Because you have yet to be denied credit, the report isn’t free. The credit reporting agencies charge you about $10.00 for a copy of your report.
Consumer Rights Lawyers
If you believe a credit reporting agency has violated your rights, you should consider obtaining an individual online consultation with a consumer rights attorney.
