Fair Credit Reporting Act (FCRA): What You Need to Know - YouTube

FAIR CREDIT REPORTING ACT – CREDIT REPORTING AGENCIES AND

CONSUMER RIGHTS There are many consumer reporting agencies,

including credit bureaus and specialty agencies, that are allowed to store and sell

information about you.

This can include things like your check writing history, medical records,

and rental records.

These companies must abide by the Fair Credit Reporting Act (FCRA), which ensures that the

data they hold is accurate, secure and that it is used fairly.

Here’s what you should know about your rights in relation to credit reporting agencies:

SHARING OF INFORMATION Firstly, you must be told if any information

in your file has been used against you.

If anyone has used a credit or consumer report to deny an

application you made or to take any adverse action

against you, they must tell you about it.

They must also inform you of the address and contact

details of the reporting agency they used.

You have the right to know what is in your file.

You can request a ‘FILE DISCLOSURE’ and obtain all of the information a credit reporting

agency has about you.

You will need to provide identification, such as your Driver License,

ID, Social Security Card, but in many cases the

disclosure will be free of charge.

You are entitled to a free file disclosure if any of the following

happens: ● A PERSON OR COMPANY TAKES ADVERSE ACTION

AGAINST YOU BASED ON A CONSUMER REPORT

● YOU ARE THE VICTIM OF IDENTITY THEFT ● YOUR FILE CONTAINS INACCURATE INFORMATION

AS A RESULT OF FRAUD ● YOU ARE ON PUBLIC ASSISTANCE

● YOU ARE UNEMPLOYED BUT EXPECT TO APPLY FOR EMPLOYMENT WITHIN 60

DAYS

In addition, all consumers are entitled to one free disclosure every 12 months upon request

from each nationwide credit bureau and from nationwide

specialty consumer reporting agencies.

You also have the right to ask for a credit score.

Credit scores are numerical summaries of your credit-worthiness based on information from

credit bureaus.

ACCURACY OF INFORMATION To ensure that information in your file is

correct, you have the right to dispute any incomplete or

inaccurate information.

Any report or complaint you make must be investigated by the reporting

agency, unless your dispute is deemed to be ‘FRIVOLOUS’.

Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable

information, usually within 30 days of being notified.

During this time, they can still report information that they have verified to be

accurate.

Agencies may not report outdated negative information.

In most cases, this means any negative information that is more than seven years

old, or bankruptcies that are more than 10 years old.

SECURITY OF INFORMATION To keep your information secure, a consumer

reporting agency may only provide information about you to people with a ‘VALID NEED’.

The FCRA specifies those with a valid need to

access your file, including creditors, insurers, employers, landlords, and other businesses.

When it comes to employers, you must give your consent for reports to be provided to

them.

A consumer reporting agency is not allowed to

give out information to your employer, or a

potential employer, without your written consent, though this is generally not required in the

trucking industry.

You can limit the amount of ‘PRE-SCREENED’ offers you receive for credit or insurance

based on information in your credit report.

Any unsolicited offers you get must include a toll-free phone

number that you can call to remove your name and address from their mailing list.

ACTIONS YOU CAN TAKE When it comes to nationwide consumer reporting

agencies, you have the right to place a ‘SECURITY FREEZE’ on your credit report.

This will stop an agency from releasing any

information in your credit report without your express authorization.

The security freeze is designed to prevent credit, loans, and services

from being approved in your name without your consent.

However, be aware that using a security freeze may delay, interfere with, or prohibit the

timely approval of any subsequent requests or applications

you make.

As an alternative to a security freeze, you have the right to place an initial or extended

fraud alert on your credit file at no cost.

An initial fraud alert is a 1 YEAR alert that is placed on a

consumer’s credit file.

Upon seeing a fraud alert display on a consumer’s file, a business is

required to take steps to verify the consumer’s identity before extending new credit.

If you are a victim of identity theft, you are entitled

to an extended fraud alert, which is a fraud alert lasting 7

YEARS.

If a consumer reporting agency or user of consumer reports violates the FCRA, you may

be able to sue them in state or federal court.

Identity theft victims and active duty military personnel

have additional rights which you can learn more about at www.consumerfinance.gov

States may enforce the FCRA, but be aware that many states have their own consumer

reporting laws.

In some cases, you may have more rights under state law.

To find out, you should contact your state or local consumer

protection agency or your state Attorney General.

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