Things You Should Know About the Fair Credit Reporting Act

 

As a consumer, you are very much protected by the law. In transactions dealing with credit, the Fair Credit Reporting Act and the updated version, the Fair and Accurate Credit Transaction Act makes sure that you get a fair deal. Knowing your rights is your obligation more for yourself than for others. Here are ten basic things that you should know about these laws.

 

1. The Fair Credit Reporting Act (FCRA) has been updated and is now called the Fair and Accurate Credit Transactions Act (FACTA). This law protects consumers against inaccurate information being reported by credit bureaus to credit companies and protects the privacy of that information.

 

2. Credit reports are important documents.  Under this law you have the right to ask for your credit report. You can contact the credit bureaus and pay for a report at any time. You can get them for free annually or if you are denied credit, getting employment, or availing of insurance. Other instances when a copy can be obtained for free are when you have been the victim of fraud or identity theft.

 

3. This law also requires the credit bureaus to supply you with a list of everyone who has made a request for your credit report. This is also a means to prevent identity theft.

 

4. Any inaccurate or incomplete information you find in your credit report should be reported to the credit bureaus. You may initially inform them by phone then follow them up in writing by using certified mail and return receipt requests, so that you will have documentation of all transactions made with them. The law requires them to act immediately on your request. 

 

5. The law includes provisions to protect the privacy of your credit report. Only credit companies who have received a credit application from you can obtain a copy of your credit report. Other entities would require your permission to do so.

 

6. The law has also enabled consumers to place a fraud alert on their credit report. A phone call to the credit bureau would be sufficient to signal this alert. Do not hesitate if you sense that fraud is being committed, report them right away.

 

7. The law also requires the credit bureaus to add on your report statements that you make explaining or disputing any entries that have not yet been cleared off your credit report.

 

8.  When credit bureaus do an Investigative Consumer Report, you must be notified in writing indicating the company that requested the report. Only companies where you have a pending application can request such a report. The notice will explain your right to request certain information about the report from that company.

 

9. The law provides you the right to sue for damages. Credit bureaus and credit companies can be sued in state or federal courts. If you win, the defendant will have to pay damages and reimburse you for attorney fees you paid during the duration of the case.