Fair Credit Reporting Act – 1970

Fair Credit Reporting Act – 1970

  • www.FTC.gov, Defining the Individuals Right to Privacy.

 

  • Identity Theft victims and Active military have additional rights, for more information visit the Federal Trade Commission website; www.ftc.gov/credit.

 

These days, our consumer purchase history is archived by nearly every business we interact with.  From credit reporting agencies, banking institutions and landlords, to the Medical Information Bureau (MIB) which documents the outcome of our doctor and hospital visits to the Home Depot is collecting information on us.  

 

Regardless who is doing the reporting, it’s important to understand our personal consumer history is being used by companies to judge our financial worthiness as a consumer or potential employee. The Fair Credit Reporting Act is purposed with ensuring the information and claims being reported on us are in fact accurate and within the authority of the entity doing the reporting.

 

All consumers have a right to know what information is contained within their personal file provided the request is accompanied by proper identification.  Below is a list of consumer matters specifically addressed by the Fair Credit Reporting Act.

 

  • If an entity utilizes information contained within your profile and as a result, denies your application for; credit, insurance or employment, the applicant has the right to know where the information used in the decision was obtained.  

#F240(5)c

Transparency gives us consumers an opportunity to address the claims being made against us.  When necessary, the law grants us the ability to correct inconsistencies and inaccuracies which may exist.

 

  • Consumers are entitled to a “File Disclosure” which as of 2005 is free to consumers upon request once every twelve (12) months.  This “File Disclosure” is also available to consumers who are,

 

  • The focus of a legal action, initiated by an individual utilizing information contained within the profile, 

 

  • A victim of *Identity Theft and as a result have placed a fraud alert on your personal file,

 

  • Addressing inaccurate information within your profile due to some type of Fraud committed against you, 

 

  • On public assistance or,

 

  • Currently unemployed but expect to apply for a job within 60 days.



  • Consumers also have the right to,

 

  • Request a credit score,

 

  • Dispute incomplete or inaccurate information being reported,

 

  • Limit “prescreened” offers for credit, 

 

  • Restrict employers from obtaining a personal credit profile,

 

  • Seek damages from violators of the Fair Credit Reporting Act. 

 

If it’s discovered an individual’s personal records are in fact inaccurate, incomplete, or unverifiable, the reporting entity is obligated to correct or delete the entry.  Furthermore, the reporting entity may only furnish information to entities with a legitimate reason to examine your history such as creditors, landlords, insurers, employers, and various other types of business with a need to establish your consumer/credit worthiness.  

 

  • Reporting outdated negative information against consumers is prohibited. 

Back to Lesson