| |
Top Tips for Exercising Credit Report Rights
Not only a consumer has credit rights under the existing federal laws, he also has a moral obligation to be conscious of his rights. Here are some useful tips on how to exercise these rights:
- Protect your credit report under the Fair Credit Reporting Act.
- Check your credit file by asking for a copy of your credit report from three credit reporting agencies, namely, Equifax, Experian, and Trans Union.
- Get copies of your credit reports from each of these agencies and compare them.
- All inaccurate information in the credit report should be immediately challenged. Extend the dispute to the source of the inaccurate information as well.
- Creditors are duty bound to send the notice to credit report supplying agencies about dispute on such fallacious credit report.
- Your name should be removed from the list of unsolicited credit and insurance offers. Ascertain this by contact with credit reporting agency.
- Creditors and credit reporting agencies must delete incorrect data and correct outdated data within 30 days of dispute. However, they are under no obligation to remove accurate data.
- Outdated reports like bankruptcies 10 years back may not be reported.
- Access to your credit report file should be limited.
- Don't give your social security number unless it is absolutely necessary.
The list of tips is not exhaustive and is suggestive. There may be other issues relating to your credit report. Those issues have to be resolved by you using your good counsel.
Credit Report RequestUnder the existing law, a consumer has got the veritable right to obtain a copy of his/her credit report. This report should consist of information on- Your credit status up to date. Each of the national credit reporting companies like Experian, Equifax, and Trans Union has the obligation to send you a copy of your credit report for free.
- When a company takes any opposing action against you, you are also entitled to a free report giving the name, address, and phone number of the reporting agency. The same provisions apply for inaccurate information cases.
- You are also eligible for a free credit report when you, being unemployed, are planning of job hunting within 60 days.
- In all other cases, where you are not entitled to a free copy of the report, the company may impose a charge of $9.50 within a year.
- You are entitled to get information on who asked for your credit report within last two years.
- If you are adversely affe c ted due to some third party acting as the source for a first party, you can ask for all the information on the source.
- Whenever a dispute arises, the consumer reporting company as well as the information provider is bound to investigate the claim. They are also responsible for any inaccurate information in your credit report.
- You also have the right to add a summary explanation with your credit report when you dispute the same or the dispute is not satisfactorily resolved.
Credit Reporting Agency DisputesUnder the provisions laid down in existing Federal laws, especially the Fair Credit Reporting Act, a consumer has the right to dispute inaccurate information relating to your credit report. Whenever a consumer comes across some misinformation, inaccurate information or outdated information, he should take up dispute with the agency concerned. Thereafter, the ball will be on the court of the project authorities to provide him information.Inaccurate Informatio n D isputesIn cases where the customer is denied a credit on the basis of information contained in a credit report, the creditor is under legal obligation to provide the information relating to the source to the customer. In such cases, the customer has got the rights to challenge the source for supplying inaccurate information if he has got sufficient evidence to establish such charges. The best part of it is that you can make such dispute free of charges. When you come across an error or inaccuracy in your credit report, the first step you take is to inform the credit bureau in writing disputing the error and you may supplement it with your own accurate information. Limited Application of FCRA and EFTAThe FCRA generally applies only to "open end" credit accounts such as revolving charge accounts (department store cards) and credit cards. Credit sales or loans that are paid according to a fixed schedule until the entire amount is paid back are not included. An example of which is an automo bile loan. The EFTA is applicable to electronic fund transfers, such as those involving automatic teller machines (ATMs), point-of-sale (POS) debit transactions, and other banking transactions done electronically.ConclusionA good credit rating is essential for a successful business. Provider agencies may inspect your credit report before handing out a consumer credit card, or to provide you with a credit or insurance or to deny it. In any case, you must be aware of your consumer credit rights. For example, in case of denial you must be assured of fair and equal treatment. At times, credit problems may arise due to multifarious reasons including a computer application error. Whatever the problem, the consumer rights credit has to be taken cared of. The Federal Trade Commission (FTC) enforces the credit laws like the Fair Credit Reporting Act that helps to protect the consumer credit rights to get, use and maintain credit. Fair Credit Reporting Act does guarantee a fair deal for every prospective consumer in getting a loan or credit.
Related Articles
Online credit report - How to Get Your Credit Report Online the Easy Way
Online credit report - How to Get Your Credit Report Online the Easy Way
Free credit report - Where and how to get?
Getting an Equal Chance with Equal Credit Opportunity Act
Electronic Fund Transfer Act - What Does it Specify?
Free Personal Credit Reports Online
The Credit Bureau - How it Affects You!
 Bookmark
this page  Email
this to your Friend  Add
this page to del.icio.us |
|
|
Excellent
Good
Average
Bad
Terrible
