Credit Report Laws - Designed To Make You Aware Of Your Rights and Responsibilities
Credit reports laws are designed to ensure a fair deal for the customers by allowing access to free credit reports. You are entitled for three free credit reports a year from all three credit bureaus of Experian, Equifax, and TransUnion. You can also engage credit monitoring services to keep your credit report up to date and error free. This will also allow the customers to contest any wrong entries and negative items, which will push their credit score drastically. Credit laws allow the customers to place fraud alerts on their files, which can be used to dispute the errors in the event of identity theft.
As per the Credit report laws, the customers will have the right to know about those sending you bills that are not yours by requesting the verification of the creditor agency. The credit report laws also stipulate that a free copy of the credit report should be supplied to the customer who wishes to find out the reason for denying housing or insurance.
Your credit score is valuable as it is a stepping stone to a secure future. A good credit score can affect the quality of your life and your profession as your credit record may even be considered by prospective employers. So, it is important to know why you were denied a credit and if you think you have been treated unfairly how to take it up from there.
Some of the credit report laws include
- Fair Credit Reporting Act
- Equal Credit Opportunity Act
- Fair Credit Billing Act
- Fair Debt Collection Practices Act
Fair Credit Reporting Act ensures accuracy and confidentiality of information in consumer credit reports apart from controlling the usage of credit reports and the need for the credit reporting agencies to maintain correct files.
The credit report laws make it compulsory for the credit bureaus to help the customers understand the report thoroughly. Credit reports can be issued only for those with a genuine business reason like employers, insurers and government agencies among others.
If the customer comes across any errors, he can notify the credit bureau in writing and the bureau is liable to make the necessary corrections of the wrong data. The customer can add a brief statement about the issue on the credit report in case he feels that his grievance is not solved.
If a wrong entry in your report caused the rejection of your credit application, the lender is liable to inform you the name and address of the credit bureau that issued the erroneous report. Then the customer can request for a free copy from the bureau within 30 days. The customers can ask the credit bureau to issue the corrected reports to lenders who received reports within the last six months, or to employers who received it the past two years.
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