US Laws On Credit Reporting

here are federal and state laws restricting who can access a persons credit information and what they can do with that information. These laws also affect the operations of consumer reporting agencies. One of the consumer reports covered by the federal Fair Credit Reporting Act is a credit report.

Your credit reporting rights provide you with several rights. You can obtain a copy of your credit report, as well as know who has requested a copy of your credit report. Credit reporting rights give you the ability to dispute inaccurate information on your credit report.

For example seven years after the delinquent payments. Ten years after you file for Chapter 7 bankruptcy, this information should be removed from your credit record and seven years for Chapter 13 bankruptcy. Other negative information should only remain on your credit file for the amount of time allowed by law. You can however, include a 100-word explanation of why you have this negative information on your credit record. For example, did you through no fault of your own lose a job or where you very ill and unable to work and had an abundance of medical expenses.

You have the right to have errors on your credit report corrected. Notify a Credit Reporting Agency of your dispute. Any relevant information you provide them must be considered. If they cannot verify the negative information found on your credit report, they must remove the information. This means if they cannot verify that the negative information is accurate, it must be removed from your file. When they correct your file, you can ask the credit bureau to send a copy of the corrected file to anyone who has requested a copy in the past six months.

If any of your rights under the Fair Credit Reporting Act are violated you do have the right to file a suit. You can do so in a federal or a state court. If you win your case you can be awarded damages you incurred or $1000. You would be awarded whichever amount was higher.

Starting in December 2004, consumers on the West Coast in the US were able to get a free copy of their credit report annually. By the end of September 2004, consumers on the East Coast will be able to do so as well. When free credit reports become available in a person’s state.

There is some information you will need to provide to order your free credit report. It can vary slightly depending on the credit-reporting agency. You should be ready to provide your full name, social security number, driver’s license information, current addresses and any within the last five years, date of birth, home phone number, name of employer, and signature. You can get your report from the three major CRA's. You do not need to get them all at one time. In fact, you can get your free reports over the course of the year.

There is a lot of information that is contained in a credit report and some information that cannot be contained in a credit report. Credit reports include your social security number, date of birth, current and previous addresses, telephone number, credit payment status, employment and even legal information. Your credit report will tell if you have declared bankruptcy, if you have any civil judgments or tax liens. If you are late making a payment, if you overdraw your bank account, if you miss your mortgage payment, this can all be reported to a credit-reporting agency.

Your credit report cannot include medical information unless you give consent. It cannot include notice of a number 11 bankruptcy that is over 10 years old. Your credit report cannot include delinquencies that are more than 7 years old. This includes child support.

Anyone who is considered to have a legitimate business need can access your credit report. Potential lenders can access your credit history to decide if they wish to grant you credit. Landlords and insurance companies can also view your credit history. A company with which you have a credit account can access your credit history for account monitoring purposes. Government agencies can access your credit report. However, the information they have access to is usually limited to: your name, address, former address, current and former employers.

These are some of the basics about your rights and the laws protecting American consumers in regards to their credit reports and credit history. They have the right to access their credit report, know who is access their credit report and to dispute any errors. By the end of 2005, everyone will be able to access a free credit report annually so they can check their credit report for errors and also as part of their financial planning and management.