The US government has established a law known as FCRA which stands for Fair Credit Reporting Act. It regulates what can be reported on the credit cards of people, who can view the credit history and a whole lot more. There are main consumer rights offered by the FCRA.
- The law is giving consumers the right to see and check and is included in their credit report. In the past, the credit reporting bureaus shared consumer credit history with different financial institutions but the consumers were left out of the loop. This law has created more transparency into what the consumers say by allowing them to obtain credit reports.
- The Fair Credit Reporting Act is very clear also about who can and can’t access the reports. Not just anyone is permitted to do credit check on you. It is mandated by the act that an entity should have clear acceptable purpose before they can pull your credit history. The potential entities that can pull your credit report under sure circumstances include:
Lenders – When you apply for a loan, you are giving the potential lending or credit card companies with the right or ability to obtain your credit report.
Utility Companies – They include cell phone companies and utility providers that can run a credit check on you when applying for a service. Since they extend you a monthly service, they want to be sure you have good history of repaying your debts.
Landlords, insurance companies and employers – They call can check your credit if you rent an apartment, purchase insurance policy or apply for a job.
A court of law may also issue a subpoena for credit history if it is pertinent to a proceeding. In addition, child support agencies are also given the right to pull the credit card report of a parent in establishing their ability to make payments on child support.
Remember that it is your right to review your own credit report. There is no penalty to your credit if you pull your own report.
- This act entitles the people to acquire accurate and updated credit reports which means that if there are fraud or errors on the report, the credit bureau as well as your creditor have legal responsibilities of removing the mistakes after alerting it to them. You should know that you have the right to report inaccurate data on your report and get a response from the credit bureaus within 30 to 45 days which will address your concern.
An amendment to the Fair Credit Reporting Act is the FACTA or FACT Act which stands for Fair and Accurate Credit Transactions Act. This act specifically provides consumers the right to have free credit report from all the credit bureaus namely Equifax, TransUnion and Experian each year. You should not waste the opportunity to be able to view your own credit and spot some corrections when needed. Remember that your credit history will be your gateway to qualifying for any type of loan