Protection Of Consumer Credit File Rights Under Federal And State Law |
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If you find any kind of error on your credit report, you have the right to dispute it and make a credit repair by contacting the credit bureaus directly. In America, there are three major credit bureaus that are ready to help you. These credit bureaus are Equifax, Experian and Trans Union. However, neither you nor any credit repair company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years. It's important for you to get a copy of your credit report as it tells you whether you need a credit repair. Free credit report is your right according to the Fair Credit Reporting Act (FCRA) and the laws of several states. According to one recent amendment to the Fair Credit Reporting Act, each of the three national credit-reporting agencies should provide a free copy of credit report to all the consumers, once every 12 months. The FTC, the nation's consumer protection agency, enforces the FCRA with respect to consumer reporting companies. FCRA is responsible for promoting privacy and accuracy in the credit files of the credit-reporting agencies. Under the federal law, you are permitted to apply for a free credit report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment. But remember, there is usually a charge for reports, unless your request comes within 60 days of having been denied credit employment, or insurance as a result of a credit report. Credit bureaus also provide free copies of your credit report under other circumstances. You are entitled to one report free of charge per year if you certify in writing that: you are unemployed and plan to look for a job within 60 days, or you are on welfare, or you need a credit repair because of inaccurate information due to fraud. You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. You may, on your own, notify a credit bureau in writing that you dispute the accuracy of information in your credit file. The credit bureau must then reinvestigate and modify or remove inaccurate or incomplete information. You have the right to cancel your contract with any credit repair organization for any reason within three business days from the date you signed it. Credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate. However, mistakes may occur. If the credit bureau's investigation doesn't resolve the dispute to your satisfaction, you may send a brief statement to the credit bureau, to be kept in your file, explaining why you think the record is inaccurate. The credit bureau must include a summary of your statement about disputed information with any report it issues about you. Credit repair scams are on the rise today. If you think properly and shop around a bit, you would see many credit repair agencies that always make very tall claims. But be aware! All the agencies are not trustworthy. In the recent years, millions of people have become victims in the hands of fake agencies. Therefore, most states have taken serious steps for the benefit of the consumers. California is just one example of the many states that have taken steps to protect consumers against the worst of the credit repair scams. In 1993, the California legislature imposed strict standards on credit service organizations and the credit repair industry. However, you can't solely depend on the acts to rescue you from the hands of fake credit repair organizations. You need to be very careful and cautious in choosing an organization. The scam artists who run fake ads in newspapers, radio, TV, and the Internet can't deliver. Only time, a deliberate effort, and a personal debt repayment plan would improve your credit. |
