Credit Laws & Your Rights

According to the Federal Fair Credit Reporting Act (see Appendix I), you have the following rights:

1. To obtain from any credit bureau a complete report of the information in your credit file.

Many people have never reviewed their Credit Profiles and as a result does not know what their financial stability appears to potential creditors. If you have never seen your Credit Profile then, immediately request a copy from your local Credit Bureau. The address or phone number of local Credit Bureaus are listed in the telephone directory. It is necessary for you to send them a signed letter requesting a copy of your Credit Report. The report is Free if you have been denied credit within the last 60 days; if not you can expect to pay from $5.00 - $15.00 for it. However, you should call the credit bureau for exact instructions on how to order a copy of your report.

2. To Dispute any Information in your File or to get Missing data added.

It is estimated that 7 - 10 Credit Profiles contain inaccurate information. This can be as trivial as an incorrect address or it could include a Bankruptcy by another individual. No matter what the case, you should make sure your Credit Profile is as accurate as possible and that it does not include any information belonging to another individual.

Credit File-Common Errors

Another Individuals Information with a similar Name or SSN.

Ex-spouse's information

Outdated Information, monthly or by years.

Accounts not owed by You.

Incomplete Account Listing

InAccurate or Negative Information such as delinquency or collection activity.

3. To have all potential creditors and employers who have inquired into your file during the past two years notified of errors that have been corrected.

If your Credit Profile contains Incorrect, Negative Information then you have the right to have all potential creditors and employers notified of the errors that have been corrected.

4. To put your side of the story in your credit file.

Adding your Side of the Story is an ideal method to let potential creditors know why these negative accounts are on your Credit Profile. Use this opportunity to tell your side of the story and explain why you have negative entries on your Credit Profile as it relates to specific entries. Situations such sickness, and etc., should be noted; even if you file a Consumer Dispute Form and the Credit Bureau determines, by requesting verification from the creditor, that the information is correct.
Your FCRA right to add a statement to your file applies only in cases where you are disputing the accuracy of the information in your file. Although it does not extend to situations where you are explaining the circumstances that led to the credit problems; it will not hurt to include the entire story. If they refuse to add the entire story then modify it to address only the negative information.
The credit bureau may limit your statement to 100 words or less, but if it does so, they must help you summarize it. Sometimes the credit bureau will summarize your statement without your consent. You may file a complaint and ask that your own words be used if you are dissatisfied with their summarization. When writing your statement, try to be factual, brief and clear. If you have evidence to support your version of the dispute, then be sure to mention that it is available.

5. To have detrimental credit information removed form your file after seven years and bankruptcy information after 10 years.

Derogatory information may remain on your Credit Profile for 7 years, 10 years in the case of bankruptcy. It is important to determine the exact length of time derogatory information has remained on your report. Some Credit Bureaus do not promptly remove expired negative information and some collection agencies can use the threat of permanently manipulating the reporting dates so the information remains indefinitely.

6. To keep private the information in your file from anyone other than legitimate members or users of the credit reporting agency.

You determine who reviews your credit profile each and every time you sign a credit application or rental agreement denoting that your credit profile will be reviewed. Special consideration should be given when allowing access to your credit profile. You can be denied credit if there are too many inquires into your credit profile.

7. To know exactly why you were refused credit.

If you are denied credit, the rejecting company is required by law to send you a letter stating why you were refused credit. Often, this letter is very general, so it is up to you to research the matter.

8. To receive the same good credit rating as a former spouse.

You have the right to receive the same good credit rating as a former spouse, because the law recognizes that you and your spouse are responsible for marital issues.

9. To have your credit report transferred form one city to another anytime you move.

After moving to another city, you can have your credit report transferred by contacting the credit bureaus serving your area requesting them to update your new credit profile by contacting the credit bureau in the original location.

10. To use small claims court to resolve any disputes with the credit bureau about incorrect, inaccurate information in your file.

If you have exhausted all available avenues attempting to resolve credit inaccuracies, then you have a right to take the credit bureau to court.

11. To remain silent about poor credit information that does not currently appear in your file.

If you have accounts that do not appear on your credit bureau and they are detrimental to your overall credit profile, then you have the right to not report this information or to simply remain silent.

Copyright 1994 - 1997 All Rights Reserved.