FCRA Provisions Regarding Credit Report Dissemination

credit report - confidential The FCRA, first passed in 1970, is enforced by the Federal Trade Commission. It provides specific controls on the how credit information may be disseminated. Any business that wants access to your report must have a “permissible purpose” as defined in the statute. In general, this includes any business entity that has a legitimate need to know if you are capable of paying your bills on time. Absent such purpose, only those possessing your written consent my access your credit file. Third parties without a direct permissible purpose cannot gain access without your advance consent. Any person or organization that obtains your credit report under false pretenses is subject to criminal prosecution, with penalties including fines and up to one year in jail.

Video: Understanding the Fair Credit Reporting Act

Agencies with Permissible Purpose

confidential The FCRA provides detailed guidance on how and when other people or companies may gain access to your credit report. Anytime you apply for credit or a loan, the grantor of that loan may verify your credit. This includes commercial banks, savings & loans, credit card companies, and credit unions. Insurance companies who are asked to underwrite insurance policies may do a check. Collection agencies may request your file if they are engaged in the collection of a legitimate debt. Landlords may check the credit of potential renters before allowing you to sign a rental or lease agreement. A current or prospective employer must have your advance permission before requesting your file. They see a condensed version of the report which only provides details regarding your ability to manage your financial affairs.

Certain government entities and organizations with which you are doing business can access your information. This includes child support enforcement agencies and government agencies to which you have applied for a license or financial benefit. If your financial status is not in question, government agencies are typically allowed access to personal information limited to your name, address(es), and current and former employment. Whenever your report is released, a flag will appear in the inquiries section listing the name of the requester. The more inquiries you have listed, the lower your credit score will be.

Credit Monitoring

It’s a good idea to monitor your credit, whether you do it yourself or hire a paid service to do it for you. These services will notify you whenever any suspicious activity occurs on your report, but they cost anywhere from $40 to $150 per year. The cheaper option is to do it yourself by ordering a free credit report once every four months. This is possible since the three major credit agencies will each provide a free report once a year. You should review these in detail and compare them to one another over time. Any errors should be reported immediately to all three agencies. Also, you should close unused accounts that are still listed as active, and ask that they be tagged as "closed at the request of the consumer."

Identity Theft

Video: How to Lower Your Risk of Identity Theft

Identity theft occurs when someone uses your personal information without your permission to commit fraud or other crimes. It usually starts with the illegal use of your name, credit card numbers, Social Security number, bank account number, or other financial account information. The best way to detect this is to thoroughly review all of your account statements every month, and routinely request a credit report. Any questionable activity should be promptly reported by filing a police report. You should also contact all of your creditors and dispute any transactions that you did not personally authorize.

Your Rights

Consumers have certain rights that are enforceable under the FCRA, which provides details on how to enforce these rights:

You may receive a copy of your credit report and credit score in accordance with your written request.
You may limit access to your report to anyone that does not have a permissible purpose.
You may request that the reporting agency investigate any information that you believe is inaccurate or incomplete. If they fail to investigate and delete such information, or fail to properly correct the record, you may add your own explanation of the issue to your credit report.
You may request deletion of negative information that is more than seven years old, or ten years for bankruptcies.
You may request that the reporting agencies not share your information with marketing companies.
If you are a victim of identity theft, you may initiate fraud alerts and a freeze on your credit file.

Relevant web pages

Federal Trade Commission (Credit)

Relevant Points of Contact:

Community Credit Counselors, Inc.
101 N. Lynnhaven Road, Suite 303
Virginia Beach, VA 23452-7523
800-531-5124

Consumer Credit Counseling Service of Greater Atlanta, Inc.
100 Edgewood Avenue, Suite 1800
Atlanta, GA 30303
866-672-2227

Consumer Credit Counseling Service of Greater San Antonio
6851 Citizens Parkway, Suite 100
San Antonio, TX 78229
210-979-4300

Consumer Credit Counseling Service of Orange County, Inc.
1920 Old Tustin Avenue
Santa Ana, CA 92832
888-289-8230

Consumer Credit Counseling Service of San Francisco
595 Market Street, Suite 1500
San Francisco, CA 94105
800-777-7526

The Three Major Credit Bureaus:

Equifax: 800-685-1111 (general) or 800-525-6285 (fraud)

Experian: 888-397-3742 (general and fraud)

TransUnion: 800-888-4213 (general) or 800-680-7289 (fraud)

Send this page to a friend ...