If you've ever applied for a charge account, a personal
loan, insurance, or a job, there's a file about you. This
file contains information on where you work and live, how
you pay your bills, and whether you've been sued, arrested,
or filed for bankruptcy.
Companies that gather and sell this information are called
Consumer Reporting Agencies (CRAs). The most common type
of CRA is the credit bureau. The information CRAs sell about
you to creditors, employers, insurers, and other businesses
is called a consumer report.
The Fair Credit Reporting Act (FCRA), enforced by the Federal
Trade Commission, is designed to promote accuracy and ensure
the privacy of the information used in consumer reports.
Recent amendments to the Act expand your rights and place
additional requirements on CRAs. Businesses that supply
information about you to CRAs and those that use consumer
reports also have new responsibilities under the law.
Here are some questions consumers commonly ask about consumer
reports and CRAs -- and the answers. Note that you
may have additional rights under state laws. Contact your
state Attorney General or local consumer protection agency
for more information.
Q. How do I find the CRA that has my report?
A. Contact the CRAs listed in the Yellow Pages under
"credit" or "credit rating and reporting." Because more
than one CRA may have a file on you, call each until you
locate all the agencies maintaining your file. The three
major national credit bureaus are:
- Equifax, P.O. Box 740241, Atlanta,
GA 30374-0241; (800) 685-1111.
- Experian (formerly TRW), P.O. Box
2104, Allen, TX 75013; (888) EXPERIAN (397-3742).
- Trans Union, P.O. Box 1000, Chester,
PA 19022; (800) 916-8800.
In addition, anyone who takes action against you in response
to a report supplied by a CRA -- such as denying your application
for credit, insurance, or employment -- must give you the
name, address, and telephone number of the CRA that provided
the report.
Q. Do I have a right to know what's in my report?
A. Yes, if you ask for it. The CRA must tell you everything
in your report, including medical information, and in
most cases, the sources of the information. The CRA also
must give you a list of everyone who has requested your
report within the past year -- two years for employment
related requests.
Q. Is there a charge for my report?
A. Sometimes. There's no charge if a company takes adverse
action against you, such as denying your application for
credit, insurance or employment, and you request your
report within 60 days of receiving the notice of the action.
The notice will give you the name, address, and phone
number of the CRA. In addition, you're entitled to one
free report a year (1) you're unemployed and plan to look
for a job within 60 days, (2) you're on welfare, or (3)
your report is inaccurate because of fraud. Otherwise,
a CRA may charge you up to $9
for a copy of your report.
Q. What can I do about inaccurate or incomplete
information?
A. Under the new law, both the CRA and the information
provider have responsibilities for correcting inaccurate
or incomplete information in your report. To protect all
your rights under this law, contact both the CRA and the
information provider.
First, tell the CRA in writing what information you believe
is inaccurate. CRAs must reinvestigate the items in question
- usually within 30 days -- unless they consider your dispute
frivolous. They also must forward all relevant data you
provide about the dispute to the information provider. After
the information provider receives notice of a dispute from
the CRA, it must investigate, review all relevant information
provided by the CRA, and report the results to the CRA.
If the information provider finds the disputed information
to be inaccurate, it must notify all nationwide CRAs so
that they can correct this information in your file.
When the reinvestigation is complete, the CRA must give
you the written results and a free copy of your report if
the dispute results in a change. If an item is changed or
removed, the CRA cannot put the disputed information back
in your file unless the information provider verifies its
accuracy and completeness, and the CRA gives you a written
notice that includes the name, address, and phone number
of the provider.
Second, tell the creditor or other information provider
in writing that you dispute an item. Many providers specify
an address for disputes. If the provider then reports the
item to any CRA, it must include a notice of your dispute.
In addition, if you are correct -- that is, if the information
is inaccurate -- the information provider may not use it
again.
Q. What can I do if the CRA or information provider
won't correct the information I dispute?
A. A reinvestigation may not resolve your dispute with
the CRA. If that's the case, ask the CRA to include your
statement of the dispute in your file and in future reports.
If you request, the CRA also will provide your statement
to anyone who received a copy of the old report in the
recent past. There usually is a fee for this service.
If you tell the information provider that you dispute an
item, a notice of your dispute must be included anytime
the information provider reports the item to a CRA.
Q. Can my employer get my report?
A. Only if you say it's okay. A CRA may not supply information
about you to your employer, or to a prospective employer,
without your consent.
Q. Can creditors, employers, or insurers get
a report that contains medical information about me?
A. Not without your approval.
Q. What should I know about "investigative consumer
reports"?
A. "Investigative consumer reports" are detailed reports
that involve interviews with your neighbors or acquaintances
about your lifestyle, character, and reputation. They
may be used in connection with insurance and employment
applications. You'll be notified in writing when a company
orders such a report. The notice will explain your right
to request certain information about the report from the
company you applied to. If your application is rejected,
you may get additional information from the CRA. However,
the CRA does not have to reveal the sources of the information.
Q. How long can a CRA report negative information?
A. Seven years. There are certain exceptions:
- Information about criminal convictions may be reported
without any time limitation.
- Bankruptcy information may be reported for 10 years.
- Information reported in response to an application
for a job with a salary of more than $75,000 has no
time limit.
- Information reported because of an application for
more than $150,000 worth of credit or life insurance
has no time limit.
- Information about a lawsuit or an unpaid judgment
against you can be reported for seven years or until
the statute of limitations runs out, whichever is longer.
Q. Can anyone get a copy of my report?
A. No. Only people with a legitimate business need, as
recognized by the FCRA. For example, a company is allowed
to get your report if you apply for credit, insurance,
employment, or to rent an apartment.
Q. How can I stop a CRA from including me on
lists for unsolicited credit and insurance offers?
A. Creditors and insurers may use CRA file information
as a basis for sending you unsolicited offers. These offers
must include a toll-free number for you to call if you
want to remove your name and address from lists for two
years; completing a form that the CRA provides for this
purpose will keep your name off the lists permanently.
Q. Do I have the right to sue for damages?
A. You may sue a CRA, a user or -- in some cases -- a
provider of CRA data, in state or federal court for most
violations of the FCRA. If you win, the defendant will
have to pay damages and reimburse you for attorney fees
to the extent ordered by the court.
Q. Are there other laws I should know about?
A. Yes. If your credit application was denied, the Equal
Credit Opportunity Act requires creditors to specify why
-- if you ask. For example, the creditor must tell you
whether you were denied because you have "no credit file"
with a CRA or because the CRA says you have "delinquent
obligations." The ECOA also requires creditors to consider
additional information you might supply about your credit
history. You may want to find out why the creditor denied
your application before you contact the CRA.
Q. Where should I report violations of the law?
A. Although the FTC can't act as your lawyer in private
disputes, information about your experiences and concerns
is vital to the enforcement of the Fair Credit Reporting
Act. Send your questions or complaints to: Consumer Response
Center -- FCRA, Federal Trade Commission, Washington,
D.C. 20580.
